A.M. NO. 07-11-08-SC "SPECIAL RULES OF
Recognition and Enforcement of a Foreign Arbitral
COURT ON ALTERNATIVE DISPUTE
RESOLUTION"
Republic of the Philippines
SUPREME COURT
Manila
EN BANC
A.M. No. 07-11-08-SC September 1,
2009
SPECIAL RULES OF COURT ON ALTERNATIVE
DISPUTE RESOLUTION
Acting on the recommendation of the Chairperson of
the Sub-Committee on the Rules on Alternative
Dispute Resolution submitting for this Courts
consideration and approval the proposed Special
Rules of Court on Alternative Dispute Resolution, the
Court Resolved to APPROVE the same.
This Rule shall take effect on October 30, 2009
following its publication in three (3) newspapers of
general circulation.
September 1, 2009.
SPECIAL RULES OF COURT ON ALTERNATIVE
DISPUTE RESOLUTION
PART I
GENERAL PROVISIONS AND POLICIES
RULE 1: GENERAL PROVISIONS
Rule 1.1. Subject matter and governing rules .-The
Special Rules of Court on Alternative Dispute
Resolution (the "Special ADR Rules") shall apply to
and govern the following cases:
a. Relief on the issue of Existence, Validity, or
Enforceability of the Arbitration Agreement;
b. Referral to Alternative Dispute Resolution ("ADR");
c. Interim Measures of Protection;
d. Appointment of Arbitrator;
e. Challenge to Appointment of Arbitrator;
f. Termination of Mandate of Arbitrator;
g. Assistance in Taking Evidence;
h. Confirmation, Correction or Vacation of Award in
Domestic Arbitration;
i. Recognition and Enforcement or Setting Aside of an
Award in International Commercial Arbitration;
j.
Award;
k. Confidentiality/Protective Orders; and
l. Deposit and Enforcement of Mediated Settlement
Agreements.
Rule 1.2. Nature of the proceedings.-All proceedings
under the Special ADR Rules are special proceedings.
Rule 1.3. Summary proceedings in certain cases.-The
proceedings in the following instances are summary in
nature and shall be governed by this provision:
a. Judicial Relief Involving the Issue of Existence,
Validity or Enforceability of the Arbitration Agreement;
b. Referral to ADR;
c. Interim Measures of Protection;
d. Appointment of Arbitrator;
e. Challenge to Appointment of Arbitrator;
f. Termination of Mandate of Arbitrator;
g. Assistance in Taking Evidence;
h. Confidentiality/Protective Orders; and
i. Deposit and Enforcement of Mediated Settlement
Agreements.
(A) Service and filing of petition in summary
proceedings.-The petitioner shall serve, either by
personal service or courier, a copy of the petition
upon the respondent before the filing thereof. Proof
of service shall be attached to the petition filed in
court.
For personal service, proof of service of the petition
consists of the affidavit of the person who effected
service, stating the time, place and manner of the
service on the respondent. For service by courier,
proof of service consists of the signed courier proof of
delivery. If service is refused or has failed, the
affidavit or delivery receipt must state the
circumstances of the attempted service and refusal or
failure thereof.
(B) Notice.-Except for cases involving Referral to ADR
and Confidentiality/Protective Orders made through
motions, the court shall, if it finds the petition
sufficient in form and substance, send notice to the
parties directing them to appear at a particular time
and date for the hearing thereof which shall be set no
later than five (5) days from the lapse of the period
for filing the opposition or comment. The notice to the
1
respondent shall contain a statement allowing him to
file a comment or opposition to the petition within
fifteen (15) days from receipt of the notice.
The motion filed pursuant to the rules on Referral to
ADR or Confidentiality/Protective Orders shall be set
for hearing by the movant and contain a notice of
hearing that complies with the requirements under
Rule 15 of the Rules of Court on motions.
(C) Summary hearing. - In all cases, as far as
practicable, the summary hearing shall be conducted
in one (1) day and only for purposes of clarifying
facts.
Except in cases involving Referral to ADR or
Confidentiality/Protective Orders made through
motions, it shall be the court that sets the petition for
hearing within five (5) days from the lapse of the
period for filing the opposition or comment.
(D) Resolution. - The court shall resolve the matter
within a period of thirty (30) days from the day of the
hearing.
Rule 1.4. Verification and submissions. -Any
pleading, motion, opposition, comment, defense or
claim filed under the Special ADR Rules by the proper
party shall be supported by verified statements that
the affiant has read the same and that the factual
allegations therein are true and correct of his own
personal knowledge or based on authentic records
and shall contain as annexes the supporting
documents.
The annexes to the pleading, motion, opposition,
comment, defense or claim filed by the proper party
may include a legal brief, duly verified by the lawyer
submitting it, stating the pertinent facts, the
applicable law and jurisprudence to justify the
necessity for the court to rule upon the issue raised.
Rule 1.5. Certification Against Forum Shopping. - A
Certification Against Forum Shopping is one made
under oath made by the petitioner or movant: (a) that
he has not theretofore commenced any action or filed
any claim involving the same issues in any court,
tribunal or quasi-judicial agency and, to the best of
his knowledge, no such other action or claim is
pending therein; (b) if there is such other pending
action or claim, a complete statement of the present
status thereof; and (c) if he should thereafter learn
that the same or similar action or claim has been filed
or is pending, he shall report that fact within five (5)
days therefrom to the court wherein his
aforementioned petition or motion has been filed.
A Certification Against Forum Shopping shall be
appended to all initiatory pleadings except a Motion to
Refer the Dispute to Alternative Dispute Resolution.
Rule 1.6. Prohibited submissions. - The following
pleadings, motions, or petitions shall not be allowed
in the cases governed by the Special ADR Rules and
shall not be accepted for filing by the Clerk of Court:
a. Motion to dismiss;
b. Motion for bill of particulars;
c. Motion for new trial or for reopening of trial;
d. Petition for relief from judgment;
e. Motion for extension, except in cases where an ex-
parte temporary order of protection has been issued;
f. Rejoinder to reply;
g. Motion to declare a party in default; and
h. Any other pleading specifically disallowed under
any provision of the Special ADR Rules.
The court shall motu proprio order a pleading/motion
that it has determined to be dilatory in nature be
expunged from the records.
Rule 1.7. Computation of time. - In computing any
period of time prescribed or allowed by the Special
ADR Rules, or by order of the court, or by any
applicable statute, the day of the act or event from
which the designated period of time begins to run is
to be excluded and the date of performance included.
If the last day of the period, as thus computed, falls
on a Saturday, a Sunday, or a legal holiday in the
place where the court sits, the time shall not run until
the next working day.
Should an act be done which effectively interrupts the
running of the period, the allowable period after such
interruption shall start to run on the day after notice
of the cessation of the cause thereof.
The day of the act that caused the interruption shall
be excluded from the computation of the period.
Rule 1.8. Service and filing of pleadings, motions
and other papers in non-summary proceedings. - The
initiatory pleadings shall be filed directly with the
court. The court will then cause the initiatory pleading
to be served upon the respondent by personal service
or courier. Where an action is already pending,
pleadings, motions and other papers shall be filed
and/or served by the concerned party by personal
service or courier. Where courier services are not
available, resort to registered mail is allowed.
2
(A) Proof of filing. - The filing of a pleading shall be
proved by its existence in the record of the case. If it
is not in the record, but is claimed to have been filed
personally, the filing shall be proved by the written or
stamped acknowledgment of its filing by the clerk of
court on a copy of the same; if filed by courier, by the
proof of delivery from the courier company.
(B) Proof of service. - Proof of personal service shall
consist of a written admission by the party served, or
the official return of the server, or the affidavit of the
party serving, containing a full statement of the date,
place and manner of service. If the service is by
courier, proof thereof shall consist of an affidavit of
the proper person, stating facts showing that the
document was deposited with the courier company in
a sealed envelope, plainly addressed to the party at
his office, if known, otherwise at his residence, with
postage fully pre-paid, and with instructions to the
courier to immediately provide proof of delivery.
(C) Filing and service by electronic means and proof
thereof. - Filing and service of pleadings by electronic
transmission may be allowed by agreement of the
parties approved by the court. If the filing or service
of a pleading or motion was done by electronic
transmission, proof of filing and service shall be made
in accordance with the Rules on Electronic Evidence.
Rule 1.9. No summons. - In cases covered by the
Special ADR Rules, a court acquires authority to act
on the petition or motion upon proof of jurisdictional
facts, i.e., that the respondent was furnished a copy
of the petition and the notice of hearing.
(A) Proof of service. - A proof of service of the
petition and notice of hearing upon respondent shall
be made in writing by the server and shall set forth
the manner, place and date of service.
(B) Burden of proof. - The burden of showing that a
copy of the petition and the notice of hearing were
served on the respondent rests on the petitioner.
The technical rules on service of summons do not
apply to the proceedings under the Special ADR
Rules. In instances where the respondent, whether a
natural or a juridical person, was not personally
served with a copy of the petition and notice of
hearing in the proceedings contemplated in the first
paragraph of Rule 1.3 (B), or the motion in
proceedings contemplated in the second paragraph of
Rule 1.3 (B), the method of service resorted to must
be such as to reasonably ensure receipt thereof by
the respondent to satisfy the requirement of due
process.
Rule 1.10. Contents of petition/motion. - The
initiatory pleading in the form of a verified petition or
motion, in the appropriate case where court
proceedings have already commenced, shall include
the names of the parties, their addresses, the
necessary allegations supporting the petition and the
relief(s) sought.
Rule 1.11. Definition. - The following terms shall
have the following meanings:
a. "ADR Laws" refers to the whole body of ADR laws
in the Philippines.
b. "Appointing Authority" shall mean the person or
institution named in the arbitration agreement as the
appointing authority; or the regular arbitration
institution under whose rule the arbitration is agreed
to be conducted. Where the parties have agreed to
submit their dispute to institutional arbitration rules,
and unless they have agreed to a different procedure,
they shall be deemed to have agreed to procedure
under such arbitration rules for the selection and
appointment of arbitrators. In ad hoc arbitration, the
default appointment of arbitrators shall be made by
the National President of the Integrated Bar of the
Philippines or his duly authorized representative.
c. "Authenticate" means to sign, execute or use a
symbol, or encrypt a record in whole or in part,
intended to identify the authenticating party and to
adopt, accept or establish the authenticity of a record
or term.
d. "Foreign Arbitral Award" is one made in a country
other than the Philippines.
e. "Legal Brief" is a written legal argument submitted
to a court, outlining the facts derived from the factual
statements in the witnesss statements of fact and
citing the legal authorities relied upon by a party in a
case submitted in connection with petitions, counter-
petitions (i.e., petitions to vacate or to set aside
and/or to correct/modify in opposition to petitions to
confirm or to recognize and enforce, or petitions to
confirm or to recognize and enforce in opposition to
petitions to vacate or set aside and/or
correct/modify), motions, evidentiary issues and other
matters that arise during the course of a case. The
legal brief shall state the applicable law and the
relevant jurisprudence and the legal arguments in
support of a partys position in the case.
f. "Verification" shall mean a certification under oath
by a party or a person who has authority to act for a
party that he has read the pleading/motion, and that
he certifies to the truth of the facts stated therein on
the basis of his own personal knowledge or authentic
3
documents in his possession. When made by a
lawyer, verification shall mean a statement under
oath by a lawyer signing a pleading/motion for
delivery to the Court or to the parties that he
personally prepared the pleading/motion, that there is
sufficient factual basis for the statements of fact
stated therein, that there is sufficient basis in the
facts and the law to support the prayer for relief
therein, and that the pleading/motion is filed in good
faith and is not interposed for delay.
Rule 1.12. Applicability of Part II on Specific Court
Relief. - Part II of the Special ADR Rules on Specific
Court Relief, insofar as it refers to arbitration, shall
also be applicable to other forms of ADR.
Rule 1.13. Spirit and intent of the Special ADR
Rules. In situations where no specific rule is
provided under the Special ADR Rules, the court shall
resolve such matter summarily and be guided by the
spirit and intent of the Special ADR Rules and the
ADR Laws.
RULE 2: STATEMENT OF POLICIES
Rule 2.1. General policies. - It is the policy of the
State to actively promote the use of various modes of
ADR and to respect party autonomy or the freedom of
the parties to make their own arrangements in the
resolution of disputes with the greatest cooperation of
and the least intervention from the courts. To this
end, the objectives of the Special ADR Rules are to
encourage and promote the use of ADR, particularly
arbitration and mediation, as an important means to
achieve speedy and efficient resolution of disputes,
impartial justice, curb a litigious culture and to de-clog
court dockets.
The court shall exercise the power of judicial review
as provided by these Special ADR Rules. Courts shall
intervene only in the cases allowed by law or these
Special ADR Rules.
Rule 2.2. Policy on arbitration.- (A) Where the
parties have agreed to submit their dispute to
arbitration, courts shall refer the parties to arbitration
pursuant to Republic Act No. 9285 bearing in mind
that such arbitration agreement is the law between
the parties and that they are expected to abide by it
in good faith. Further, the courts shall not refuse to
refer parties to arbitration for reasons including, but
not limited to, the following:
a. The referral tends to oust a court of its jurisdiction;
b. The court is in a better position to resolve the
dispute subject of arbitration;
c. The referral would result in multiplicity of suits;
d. The arbitration proceeding has not commenced;
e. The place of arbitration is in a foreign country;
f. One or more of the issues are legal and one or
more of the arbitrators are not lawyers;
g. One or more of the arbitrators are not Philippine
nationals; or
h. One or more of the arbitrators are alleged not to
possess the required qualification under the
arbitration agreement or law.
(B) Where court intervention is allowed under ADR
Laws or the Special ADR Rules, courts shall not refuse
to grant relief, as provided herein, for any of the
following reasons:
a. Prior to the constitution of the arbitral tribunal, the
court finds that the principal action is the subject of
an arbitration agreement; or
b. The principal action is already pending before an
arbitral tribunal.
The Special ADR Rules recognize the principle of
competence-competence, which means that the
arbitral tribunal may initially rule on its own
jurisdiction, including any objections with respect to
the existence or validity of the arbitration agreement
or any condition precedent to the filing of a request
for arbitration.
The Special ADR Rules recognize the principle of
separability of the arbitration clause, which means
that said clause shall be treated as an agreement
independent of the other terms of the contract of
which it forms part. A decision that the contract is null
and void shall not entail ipso jure the invalidity of the
arbitration clause.
Rule 2.3. Rules governing arbitral proceedings. - The
parties are free to agree on the procedure to be
followed in the conduct of arbitral proceedings. Failing
such agreement, the arbitral tribunal may conduct
arbitration in the manner it considers appropriate.
Rule 2.4. Policy implementing competence-
competence principle. - The arbitral tribunal shall be
accorded the first opportunity or competence to rule
on the issue of whether or not it has the competence
or jurisdiction to decide a dispute submitted to it for
decision, including any objection with respect to the
existence or validity of the arbitration agreement.
When a court is asked to rule upon issue/s affecting
the competence or jurisdiction of an arbitral tribunal
4
in a dispute brought before it, either before or after
the arbitral tribunal is constituted, the court must
exercise judicial restraint and defer to the
competence or jurisdiction of the arbitral tribunal by
allowing the arbitral tribunal the first opportunity to
rule upon such issues.
Where the court is asked to make a determination of
whether the arbitration agreement is null and void,
inoperative or incapable of being performed, under
this policy of judicial restraint, the court must make
no more than a prima facie determination of that
issue.
Unless the court, pursuant to such prima facie
determination, concludes that the arbitration
agreement is null and void, inoperative or incapable
of being performed, the court must suspend the
action before it and refer the parties to arbitration
pursuant to the arbitration agreement.
Rule 2.5. Policy on mediation. - The Special ADR
Rules do not apply to Court-Annexed Mediation, which
shall be governed by issuances of the Supreme Court.
Where the parties have agreed to submit their dispute
to mediation, a court before which that dispute was
brought shall suspend the proceedings and direct the
parties to submit their dispute to private mediation. If
the parties subsequently agree, however, they may
opt to have their dispute settled through Court-
Annexed Mediation.
Rule 2.6. Policy on Arbitration-Mediation or
Mediation-Arbitration. - No arbitrator shall act as a
mediator in any proceeding in which he is acting as
arbitrator; and all negotiations towards settlement of
the dispute must take place without the presence of
that arbitrator. Conversely, no mediator shall act as
arbitrator in any proceeding in which he acted as
mediator.
Rule 2.7. Conversion of a settlement agreement to
an arbitral award. - Where the parties to mediation
have agreed in the written settlement agreement that
the mediator shall become the sole arbitrator for the
dispute or that the settlement agreement shall
become an arbitral award, the sole arbitrator shall
issue the settlement agreement as an arbitral award,
which shall be subject to enforcement under the law.
PART II
SPECIFIC COURT RELIEF
RULE 3: JUDICIAL RELIEF INVOLVING THE
ISSUE OF EXISTENCE, VALIDITY AND
ENFORCEABILITY OF THE ARBITRATION
AGREEMENT
Rule 3.1. When judicial relief is available. - The
judicial relief provided in Rule 3, whether resorted to
before or after commencement of arbitration, shall
apply only when the place of arbitration is in the
Philippines.
A. Judicial Relief before Commencement of
Arbitration
Rule 3.2. Who may file petition. - Any party to an
arbitration agreement may petition the appropriate
court to determine any question concerning the
existence, validity and enforceability of such
arbitration agreement serving a copy thereof on the
respondent in accordance with Rule 1.4 (A).
Rule 3.3. When the petition may be filed. - The
petition for judicial determination of the existence,
validity and/or enforceability of an arbitration
agreement may be filed at any time prior to the
commencement of arbitration.
Despite the pendency of the petition provided herein,
arbitral proceedings may nevertheless be commenced
and continue to the rendition of an award, while the
issue is pending before the court.
Rule 3.4. Venue. - A petition questioning the
existence, validity and enforceability of an arbitration
agreement may be filed before the Regional Trial
Court of the place where any of the petitioners or
respondents has his principal place of business or
residence.
Rule 3.5. Grounds. - A petition may be granted only
if it is shown that the arbitration agreement is, under
the applicable law, invalid, void, unenforceable or
inexistent.
Rule 3.6. Contents of petition. - The verified petition
shall state the following:
a. The facts showing that the persons named as
petitioner or respondent have legal capacity to sue or
be sued;
b. The nature and substance of the dispute between
the parties;
c. The grounds and the circumstances relied upon by
the petitioner to establish his position; and
d. The relief/s sought.
Apart from other submissions, the petitioner must
attach to the petition an authentic copy of the
arbitration agreement.
5
Rule 3.7. Comment/Opposition.-The
comment/opposition of the respondent must be filed
within fifteen (15) days from service of the petition.
Rule 3.8. Court action. - In resolving the petition, the
court must exercise judicial restraint in accordance
with the policy set forth in Rule 2.4, deferring to the
competence or jurisdiction of the arbitral tribunal to
rule on its competence or jurisdiction.
Rule 3.9. No forum shopping. - A petition for judicial
relief under this Rule may not be commenced when
the existence, validity or enforceability of an
arbitration agreement has been raised as one of the
issues in a prior action before the same or another
court.
Rule 3.10. Application for interim relief. - If the
petitioner also applies for an interim measure of
protection, he must also comply with the
requirements of the Special ADR Rules for the
application for an interim measure of protection.
Rule 3.11. Relief against court action. - Where there
is a prima facie determination upholding the
arbitration agreement.-A prima facie determination by
the court upholding the existence, validity or
enforceability of an arbitration agreement shall not be
subject to a motion for reconsideration, appeal or
certiorari.
Such prima facie determination will not, however,
prejudice the right of any party to raise the issue of
the existence, validity and enforceability of the
arbitration agreement before the arbitral tribunal or
the court in an action to vacate or set aside the
arbitral award. In the latter case, the courts review of
the arbitral tribunals ruling upholding the existence,
validity or enforceability of the arbitration agreement
shall no longer be limited to a mere prima facie
determination of such issue or issues as prescribed in
this Rule, but shall be a full review of such issue or
issues with due regard, however, to the standard for
review for arbitral awards prescribed in these Special
ADR Rules.
B. Judicial Relief after Arbitration Commences
Rule 3.12. Who may file petition. - Any party to
arbitration may petition the appropriate court for
judicial relief from the ruling of the arbitral tribunal on
a preliminary question upholding or declining its
jurisdiction. Should the ruling of the arbitral tribunal
declining its jurisdiction be reversed by the court, the
parties shall be free to replace the arbitrators or any
one of them in accordance with the rules that were
applicable for the appointment of arbitrator sought to
be replaced.
Rule 3.13. When petition may be filed. - The petition
may be filed within thirty (30) days after having
received notice of that ruling by the arbitral tribunal.
Rule 3.14. Venue. - The petition may be filed before
the Regional Trial Court of the place where arbitration
is taking place, or where any of the petitioners or
respondents has his principal place of business or
residence.
Rule 3.15. Grounds. - The petition may be granted
when the court finds that the arbitration agreement is
invalid, inexistent or unenforceable as a result of
which the arbitral tribunal has no jurisdiction to
resolve the dispute.
Rule 3.16. Contents of petition. - The petition shall
state the following:
a. The facts showing that the person named as
petitioner or respondent has legal capacity to sue or
be sued;
b. The nature and substance of the dispute between
the parties;
c. The grounds and the circumstances relied upon by
the petitioner; and
d. The relief/s sought.
In addition to the submissions, the petitioner shall
attach to the petition a copy of the request for
arbitration and the ruling of the arbitral tribunal.
The arbitrators shall be impleaded as nominal parties
to the case and shall be notified of the progress of the
case.
Rule 3.17. Comment/Opposition. - The
comment/opposition must be filed within fifteen (15)
days from service of the petition.
Rule 3.18. Court action. - (A) Period for resolving
the petition.- The court shall render judgment on the
basis of the pleadings filed and the evidence, if any,
submitted by the parties, within thirty (30) days from
the time the petition is submitted for resolution.
(B) No injunction of arbitration proceedings. - The
court shall not enjoin the arbitration proceedings
during the pendency of the petition.
Judicial recourse to the court shall not prevent the
arbitral tribunal from continuing the proceedings and
rendering its award.
(C) When dismissal of petition is appropriate. - The
court shall dismiss the petition if it fails to comply with
Rule 3.16 above; or if upon consideration of the
6
grounds alleged and the legal briefs submitted by the
parties, the petition does not appear to be prima facie
meritorious.
Rule 3.19. Relief against court action. - The
aggrieved party may file a motion for reconsideration
of the order of the court. The decision of the court
shall, however, not be subject to appeal. The ruling of
the court affirming the arbitral tribunals jurisdiction
shall not be subject to a petition for certiorari. The
ruling of the court that the arbitral tribunal has no
jurisdiction may be the subject of a petition for
certiorari.
Rule 3.20. Where no petition is allowed. - Where the
arbitral tribunal defers its ruling on preliminary
question regarding its jurisdiction until its final award,
the aggrieved party cannot seek judicial relief to
question the deferral and must await the final arbitral
award before seeking appropriate judicial recourse.
A ruling by the arbitral tribunal deferring resolution on
the issue of its jurisdiction until final award, shall not
be subject to a motion for reconsideration, appeal or
a petition for certiorari.
Rule 3.21. Rendition of arbitral award before court
decision on petition from arbitral tribunals preliminary
ruling on jurisdiction. - If the arbitral tribunal renders
a final arbitral award and the Court has not rendered
a decision on the petition from the arbitral tribunals
preliminary ruling affirming its jurisdiction, that
petition shall become ipso facto moot and academic
and shall be dismissed by the Regional Trial Court.
The dismissal shall be without prejudice to the right of
the aggrieved party to raise the same issue in a timely
petition to vacate or set aside the award.
Rule 3.22. Arbitral tribunal a nominal party. - The
arbitral tribunal is only a nominal party. The court
shall not require the arbitral tribunal to submit any
pleadings or written submissions but may consider
the same should the latter participate in the
proceedings, but only as nominal parties thereto.
RULE 4: REFERRAL TO ADR
Rule 4.1. Who makes the request. - A party to a
pending action filed in violation of the arbitration
agreement, whether contained in an arbitration clause
or in a submission agreement, may request the court
to refer the parties to arbitration in accordance with
such agreement.
Rule 4.2. When to make request. - (A) Where the
arbitration agreement exists before the action is filed.
- The request for referral shall be made not later than
the pre-trial conference. After the pre-trial
conference, the court will only act upon the request
for referral if it is made with the agreement of all
parties to the case.
(B) Submission agreement. - If there is no existing
arbitration agreement at the time the case is filed but
the parties subsequently enter into an arbitration
agreement, they may request the court to refer their
dispute to arbitration at any time during the
proceedings.
Rule 4.3. Contents of request. - The request for
referral shall be in the form of a motion, which shall
state that the dispute is covered by an arbitration
agreement.
Apart from other submissions, the movant shall attach
to his motion an authentic copy of the arbitration
agreement.
The request shall contain a notice of hearing
addressed to all parties specifying the date and time
when it would be heard. The party making the
request shall serve it upon the respondent to give him
the opportunity to file a comment or opposition as
provided in the immediately succeeding Rule before
the hearing.
Rule 4.4. Comment/Opposition. - The
comment/opposition must be filed within fifteen (15)
days from service of the petition. The
comment/opposition should show that: (a) there is no
agreement to refer the dispute to arbitration; and/or
(b) the agreement is null and void; and/or (c) the
subject-matter of the dispute is not capable of
settlement or resolution by arbitration in accordance
with Section 6 of the ADR Act.
Rule 4.5. Court action. - After hearing, the court
shall stay the action and, considering the statement of
policy embodied in Rule 2.4, above, refer the parties
to arbitration if it finds prima facie, based on the
pleadings and supporting documents submitted by the
parties, that there is an arbitration agreement and
that the subject-matter of the dispute is capable of
settlement or resolution by arbitration in accordance
with Section 6 of the ADR Act. Otherwise, the court
shall continue with the judicial proceedings.
Rule 4.6. No reconsideration, appeal or certiorari . -
An order referring the dispute to arbitration shall be
immediately executory and shall not be subject to a
motion for reconsideration, appeal or petition for
certiorari.
An order denying the request to refer the dispute to
arbitration shall not be subject to an appeal, but may
7
be the subject of a motion for reconsideration and/or
a petition for certiorari.
Rule 4.7. Multiple actions and parties. - The court
shall not decline to refer some or all of the parties to
arbitration for any of the following reasons:
a. Not all of the disputes subject of the civil action
may be referred to arbitration;
b. Not all of the parties to the civil action are bound
by the arbitration agreement and referral to
arbitration would result in multiplicity of suits;
c. The issues raised in the civil action could be
speedily and efficiently resolved in its entirety by the
court rather than in arbitration;
d. Referral to arbitration does not appear to be the
most prudent action; or
e. The stay of the action would prejudice the rights of
the parties to the civil action who are not bound by
the arbitration agreement.
The court may, however, issue an order directing the
inclusion in arbitration of those parties who are not
bound by the arbitration agreement but who agree to
such inclusion provided those originally bound by it do
not object to their inclusion.
Rule 4.8. Arbitration to proceed.- Despite the
pendency of the action referred to in Rule 4.1, above,
arbitral proceedings may nevertheless be commenced
or continued, and an award may be made, while the
action is pending before the court.
RULE 5: INTERIM MEASURES OF PROTECTION
Rule 5.1. Who may ask for interim measures of
protection. - A party to an arbitration agreement may
petition the court for interim measures of protection.
Rule 5.2. When to petition. - A petition for an interim
measure of protection may be made (a) before
arbitration is commenced, (b) after arbitration is
commenced, but before the constitution of the arbitral
tribunal, or (c) after the constitution of the arbitral
tribunal and at any time during arbitral proceedings
but, at this stage, only to the extent that the arbitral
tribunal has no power to act or is unable to act
effectively.
Rule 5.3. Venue. - A petition for an interim measure
of protection may be filed with the Regional Trial
Court, which has jurisdiction over any of the following
places:
a. Where the principal place of business of any of the
parties to arbitration is located;
b. Where any of the parties who are individuals
resides;
c. Where any of the acts sought to be enjoined are
being performed, threatened to be performed or not
being performed; or
d. Where the real property subject of arbitration, or a
portion thereof is situated.
Rule 5.4. Grounds. - The following grounds, while
not limiting the reasons for the court to grant an
interim measure of protection, indicate the nature of
the reasons that the court shall consider in granting
the relief:
a. The need to prevent irreparable loss or injury;
b. The need to provide security for the performance
of any obligation;
c. The need to produce or preserve evidence; or
d. The need to compel any other appropriate act or
omission.
Rule 5.5. Contents of the petition. - The verified
petition must state the following:
a. The fact that there is an arbitration agreement;
b. The fact that the arbitral tribunal has not been
constituted, or if constituted, is unable to act or would
be unable to act effectively;
c. A detailed description of the appropriate relief
sought;
d. The grounds relied on for the allowance of the
petition
Apart from other submissions, the petitioner must
attach to his petition an authentic copy of the
arbitration agreement.
Rule 5.6. Type of interim measure of protection that
a court may grant.- The following, among others, are
the interim measures of protection that a court may
grant:
a. Preliminary injunction directed against a party to
arbitration;
b. Preliminary attachment against property or
garnishment of funds in the custody of a bank or a
third person;
c. Appointment of a receiver;
8
d. Detention, preservation, delivery or inspection of
property; or,
e. Assistance in the enforcement of an interim
measure of protection granted by the arbitral tribunal,
which the latter cannot enforce effectively.
Rule 5.7. Dispensing with prior notice in certain
cases. - Prior notice to the other party may be
dispensed with when the petitioner alleges in the
petition that there is an urgent need to either (a)
preserve property, (b) prevent the respondent from
disposing of, or concealing, the property, or (c)
prevent the relief prayed for from becoming illusory
because of prior notice, and the court finds that the
reason/s given by the petitioner are meritorious.
Rule 5.8. Comment/Opposition. - The
comment/opposition must be filed within fifteen (15)
days from service of the petition. The opposition or
comment should state the reasons why the interim
measure of protection should not be granted.
Rule 5.9. Court action. - After hearing the petition,
the court shall balance the relative interests of the
parties and inconveniences that may be caused, and
on that basis resolve the matter within thirty (30)
days from (a) submission of the opposition, or (b)
upon lapse of the period to file the same, or (c) from
termination of the hearing that the court may set only
if there is a need for clarification or further argument.
If the other parties fail to file their opposition on or
before the day of the hearing, the court shall motu
propriorender judgment only on the basis of the
allegations in the petition that are substantiated by
supporting documents and limited to what is prayed
for therein.
In cases where, based solely on the petition, the
court finds that there is an urgent need to either (a)
preserve property, (b) prevent the respondent from
disposing of, or concealing, the property, or (c)
prevent the relief prayed for from becoming illusory
because of prior notice, it shall issue an immediately
executory temporary order of protection and require
the petitioner, within five (5) days from receipt of that
order, to post a bond to answer for any damage that
respondent may suffer as a result of its order. The ex-
parte temporary order of protection shall be valid only
for a period of twenty (20) days from the service on
the party required to comply with the order. Within
that period, the court shall:
a. Furnish the respondent a copy of the petition and a
notice requiring him to comment thereon on or before
the day the petition will be heard; and
b. Notify the parties that the petition shall be heard
on a day specified in the notice, which must not be
beyond the twenty (20) day period of the effectivity
of the ex-parte order.
The respondent has the option of having the
temporary order of protection lifted by posting an
appropriate counter-bond as determined by the court.
If the respondent requests the court for an extension
of the period to file his opposition or comment or to
reset the hearing to a later date, and such request is
granted, the court shall extend the period of validity
of the ex-partetemporary order of protection for no
more than twenty days from expiration of the original
period.
After notice and hearing, the court may either grant
or deny the petition for an interim measure of
protection. The order granting or denying any
application for interim measure of protection in aid of
arbitration must indicate that it is issued without
prejudice to subsequent grant, modification,
amendment, revision or revocation by an arbitral
tribunal.
Rule 5.10. Relief against court action. - If
respondent was given an opportunity to be heard on
a petition for an interim measure of protection, any
order by the court shall be immediately executory, but
may be the subject of a motion for reconsideration
and/or appeal or, if warranted, a petition for
certiorari.
Rule 5.11. Duty of the court to refer back. - The
court shall not deny an application for assistance in
implementing or enforcing an interim measure of
protection ordered by an arbitral tribunal on any or all
of the following grounds:
a. The arbitral tribunal granted the interim relief ex
parte; or
b. The party opposing the application found new
material evidence, which the arbitral tribunal had not
considered in granting in the application, and which, if
considered, may produce a different result; or
c. The measure of protection ordered by the arbitral
tribunal amends, revokes, modifies or is inconsistent
with an earlier measure of protection issued by the
court.
If it finds that there is sufficient merit in the
opposition to the application based on letter (b)
above, the court shall refer the matter back to the
arbitral tribunal for appropriate determination.
9
Rule 5.12. Security. - The order granting an interim
measure of protection may be conditioned upon the
provision of security, performance of an act, or
omission thereof, specified in the order.
The Court may not change or increase or decrease
the security ordered by the arbitral tribunal.
Rule 5.13. Modification, amendment, revision or
revocation of courts previously issued interim
measure of protection. - Any court order granting or
denying interim measure/s of protection is issued
without prejudice to subsequent grant, modification,
amendment, revision or revocation by the arbitral
tribunal as may be warranted.
An interim measure of protection issued by the
arbitral tribunal shall, upon its issuance be deemed to
have ipso jure modified, amended, revised or revoked
an interim measure of protection previously issued by
the court to the extent that it is inconsistent with the
subsequent interim measure of protection issued by
the arbitral tribunal.
Rule 5.14. Conflict or inconsistency between interim
measure of protection issued by the court and by the
arbitral tribunal. - Any question involving a conflict or
inconsistency between an interim measure of
protection issued by the court and by the arbitral
tribunal shall be immediately referred by the court to
the arbitral tribunal which shall have the authority to
decide such question.
Rule 5.15. Court to defer action on petition for an
interim measure of protection when informed of
constitution of the arbitral tribunal. - The court shall
defer action on any pending petition for an interim
measure of protection filed by a party to an
arbitration agreement arising from or in connection
with a dispute thereunder upon being informed that
an arbitral tribunal has been constituted pursuant to
such agreement. The court may act upon such
petition only if it is established by the petitioner that
the arbitral tribunal has no power to act on any such
interim measure of protection or is unable to act
thereon effectively.
Rule 5.16. Court assistance should arbitral tribunal
be unable to effectively enforce interim measure of
protection. - The court shall assist in the enforcement
of an interim measure of protection issued by the
arbitral tribunal which it is unable to effectively
enforce.
RULE 6: APPOINTMENT OF ARBITRATORS
Rule 6.1. When the court may act as Appointing
Authority. - The court shall act as Appointing
Authority only in the following instances:
a. Where any of the parties in an institutional
arbitration failed or refused to appoint an arbitrator or
when the parties have failed to reach an agreement
on the sole arbitrator (in an arbitration before a sole
arbitrator) or when the two designated arbitrators
have failed to reach an agreement on the third or
presiding arbitrator (in an arbitration before a panel
of three arbitrators), and the institution under whose
rules arbitration is to be conducted fails or is unable
to perform its duty as appointing authority within a
reasonable time from receipt of the request for
appointment;
b. In all instances where arbitration is ad hoc and the
parties failed to provide a method for appointing or
replacing an arbitrator, or substitute arbitrator, or the
method agreed upon is ineffective, and the National
President of the Integrated Bar of the Philippines
(IBP) or his duly authorized representative fails or
refuses to act within such period as may be allowed
under the pertinent rules of the IBP or within such
period as may be agreed upon by the parties, or in
the absence thereof, within thirty (30) days from
receipt of such request for appointment;
c. Where the parties agreed that their dispute shall be
resolved by three arbitrators but no method of
appointing those arbitrators has been agreed upon,
each party shall appoint one arbitrator and the two
arbitrators thus appointed shall appoint a third
arbitrator. If a party fails to appoint his arbitrator
within thirty (30) days of receipt of a request to do so
from the other party, or if the two arbitrators fail to
agree on the third arbitrator within a reasonable time
from their appointment, the appointment shall be
made by the Appointing Authority. If the latter fails or
refuses to act or appoint an arbitrator within a
reasonable time from receipt of the request to do so,
any party or the appointed arbitrator/s may request
the court to appoint an arbitrator or the third
arbitrator as the case may be.
Rule 6.2. Who may request for appointment. - Any
party to an arbitration may request the court to act as
an Appointing Authority in the instances specified in
Rule 6.1 above.
Rule 6.3. Venue. - The petition for appointment of
arbitrator may be filed, at the option of the petitioner,
in the Regional Trial Court (a) where the principal
place of business of any of the parties is located, (b)
if any of the parties are individuals, where those
10
individuals reside, or (c) in the National Capital
Region.
Rule 6.4. Contents of the petition. -The petition shall
state the following:
a. The general nature of the dispute;
b. If the parties agreed on an appointment procedure,
a description of that procedure with reference to the
agreement where such may be found;
c. The number of arbitrators agreed upon or the
absence of any agreement as to the number of
arbitrators;
d. The special qualifications that the arbitrator/s must
possess, if any, that were agreed upon by the parties;
e. The fact that the Appointing Authority, without
justifiable cause, has failed or refused to act as such
within the time prescribed or in the absence thereof,
within a reasonable time, from the date a request is
made; and
f. The petitioner is not the cause of the delay in, or
failure of, the appointment of the arbitrator.
Apart from other submissions, the petitioner must
attach to the petition (a) an authentic copy of the
arbitration agreement, and (b) proof that the
Appointing Authority has been notified of the filing of
the petition for appointment with the court.
Rule 6.5. Comment/Opposition. - The
comment/opposition must be filed within fifteen (15)
days from service of the petition.
Rule 6.6. Submission of list of arbitrators. - The court
may, at its option, also require each party to submit a
list of not less than three (3) proposed arbitrators
together with their curriculum vitae.
Rule 6.7. Court action. - After hearing, if the court
finds merit in the petition, it shall appoint an
arbitrator; otherwise, it shall dismiss the petition.
In making the appointment, the court shall have
regard to such considerations as are likely to secure
the appointment of an independent and impartial
arbitrator.
At any time after the petition is filed and before the
court makes an appointment, it shall also dismiss the
petition upon being informed that the Appointing
Authority has already made the appointment.
Rule 6.8. Forum shopping prohibited. - When there
is a pending petition in another court to declare the
arbitration agreement inexistent, invalid,
unenforceable, on account of which the respondent
failed or refused to participate in the selection and
appointment of a sole arbitrator or to appoint a party-
nominated arbitrator, the petition filed under this rule
shall be dismissed.
Rule 6.9. Relief against court action. - If the court
appoints an arbitrator, the order appointing an
arbitrator shall be immediately executory and shall
not be the subject of a motion for reconsideration,
appeal or certiorari. An order of the court denying the
petition for appointment of an arbitrator may,
however, be the subject of a motion for
reconsideration, appeal or certiorari.
RULE 7: CHALLENGE TO APPOINTMENT OF
ARBITRATOR
Rule 7.1. Who may challenge. - Any of the parties to
an arbitration may challenge an arbitrator.
Rule 7.2. When challenge may be raised in court. -
When an arbitrator is challenged before the arbitral
tribunal under the procedure agreed upon by the
parties or under the procedure provided for in Article
13 (2) of the Model Law and the challenge is not
successful, the aggrieved party may request the
Appointing Authority to rule on the challenge, and it is
only when such Appointing Authority fails or refuses
to act on the challenge within such period as may be
allowed under the applicable rule or in the absence
thereof, within thirty (30) days from receipt of the
request, that the aggrieved party may renew the
challenge in court.
Rule 7.3. Venue. - The challenge shall be filed with
the Regional Trial Court (a) where the principal place
of business of any of the parties is located, (b) if any
of the parties are individuals, where those individuals
reside, or (c) in the National Capital Region.
Rule 7.4. Grounds. - An arbitrator may be challenged
on any of the grounds for challenge provided for in
Republic Act No. 9285 and its implementing rules,
Republic Act No. 876 or the Model Law. The
nationality or professional qualification of an arbitrator
is not a ground to challenge an arbitrator unless the
parties have specified in their arbitration agreement a
nationality and/or professional qualification for
appointment as arbitrator.
Rule 7.5. Contents of the petition. - The petition
shall state the following:
a. The name/s of the arbitrator/s challenged and
his/their address;
b. The grounds for the challenge;
11
c. The facts showing that the ground for the
challenge has been expressly or impliedly rejected by
the challenged arbitrator/s; and
d. The facts showing that the Appointing Authority
failed or refused to act on the challenge.
The court shall dismiss the petition motu
proprio unless it is clearly alleged therein that the
Appointing Authority charged with deciding the
challenge, after the resolution of the arbitral tribunal
rejecting the challenge is raised or contested before
such Appointing Authority, failed or refused to act on
the challenge within thirty (30) days from receipt of
the request or within such longer period as may apply
or as may have been agreed upon by the parties.
Rule 7.6. Comment/Opposition. - The challenged
arbitrator or other parties may file a comment or
opposition within fifteen (15) days from service of the
petition.
Rule 7.7. Court action. - After hearing, the court
shall remove the challenged arbitrator if it finds merit
in the petition; otherwise, it shall dismiss the petition.
The court shall allow the challenged arbitrator who
subsequently agrees to accept the challenge to
withdraw as arbitrator.
The court shall accept the challenge and remove the
arbitrator in the following cases:
a. The party or parties who named and appointed the
challenged arbitrator agree to the challenge and
withdraw the appointment.
b. The other arbitrators in the arbitral tribunal agree
to the removal of the challenged arbitrator; and
c. The challenged arbitrator fails or refuses to submit
his comment on the petition or the brief of legal
arguments as directed by the court, or in such
comment or legal brief, he fails to object to his
removal following the challenge.
The court shall decide the challenge on the basis of
evidence submitted by the parties.
The court will decide the challenge on the basis of the
evidence submitted by the parties in the following
instances:
a. The other arbitrators in the arbitral tribunal agree
to the removal of the challenged arbitrator; and
b. If the challenged arbitrator fails or refuses to
submit his comment on the petition or the brief of
legal arguments as directed by the court, or in such
comment or brief of legal arguments, he fails to
object to his removal following the challenge.
Rule 7.8. No motion for reconsideration, appeal or
certiorari. - Any order of the court resolving the
petition shall be immediately executory and shall not
be the subject of a motion for reconsideration,
appeal, or certiorari.
Rule 7.9. Reimbursement of expenses and
reasonable compensation to challenged arbitrator. -
Unless the bad faith of the challenged arbitrator is
established with reasonable certainty by concealing or
failing to disclose a ground for his disqualification, the
challenged arbitrator shall be entitled to
reimbursement of all reasonable expenses he may
have incurred in attending to the arbitration and to a
reasonable compensation for his work on the
arbitration. Such expenses include, but shall not be
limited to, transportation and hotel expenses, if any.
A reasonable compensation shall be paid to the
challenged arbitrator on the basis of the length of
time he has devoted to the arbitration and taking into
consideration his stature and reputation as an
arbitrator. The request for reimbursement of
expenses and for payment of a reasonable
compensation shall be filed in the same case and in
the court where the petition to replace the challenged
arbitrator was filed. The court, in determining the
amount of the award to the challenged arbitrator,
shall receive evidence of expenses to be reimbursed,
which may consist of air tickets, hotel bills and
expenses, and inland transportation. The court shall
direct the challenging party to pay the amount of the
award to the court for the account of the challenged
arbitrator, in default of which the court may issue a
writ of execution to enforce the award.
RULE 8: TERMINATION OF THE MANDATE OF
ARBITRATOR
Rule 8.1. Who may request termination and on what
grounds.- Any of the parties to an arbitration may
request for the termination of the mandate of an
arbitrator where an arbitrator becomes de jure or de
facto unable to perform his function or for other
reasons fails to act without undue delay and that
arbitrator, upon request of any party, fails or refuses
to withdraw from his office.
Rule 8.2. When to request. - If an arbitrator refuses
to withdraw from his office, and subsequently, the
Appointing Authority fails or refuses to decide on the
termination of the mandate of that arbitrator within
such period as may be allowed under the applicable
rule or, in the absence thereof, within thirty (30) days
from the time the request is brought before him, any
12
party may file with the court a petition to terminate
the mandate of that arbitrator.
Rule 8.3. Venue. - A petition to terminate the
mandate of an arbitrator may, at that petitioners
option, be filed with the Regional Trial Court (a)
where the principal place of business of any of the
parties is located, (b) where any of the parties who
are individuals resides, or (c) in the National Capital
Region.
Rule 8.4. Contents of the petition. - The petition
shall state the following:
a. The name of the arbitrator whose mandate is
sought to be terminated;
b. The ground/s for termination;
c. The fact that one or all of the parties had
requested the arbitrator to withdraw but he failed or
refused to do so;
d. The fact that one or all of the parties requested the
Appointing Authority to act on the request for the
termination of the mandate of the arbitrator and
failure or inability of the Appointing Authority to act
within thirty (30) days from the request of a party or
parties or within such period as may have been
agreed upon by the parties or allowed under the
applicable rule.
The petitioner shall further allege that one or all of
the parties had requested the arbitrator to withdraw
but he failed or refused to do so.
Rule 8.5. Comment/Opposition. - The
comment/opposition must be filed within fifteen (15)
days from service of the petition.
Rule 8.6. Court action. - After hearing, if the court
finds merit in the petition, it shall terminate the
mandate of the arbitrator who refuses to withdraw
from his office; otherwise, it shall dismiss the petition.
Rule 8.7. No motion for reconsideration or appeal . -
Any order of the court resolving the petition shall be
immediately executory and shall not be subject of a
motion for reconsideration, appeal or petition for
certiorari.
Rule 8.8. Appointment of substitute arbitrator. -
Where the mandate of an arbitrator is terminated, or
he withdraws from office for any other reason, or
because of his mandate is revoked by agreement of
the parties or is terminated for any other reason, a
substitute arbitrator shall be appointed according to
the rules that were applicable to the appointment of
the arbitrator being replaced.
RULE 9: ASSISTANCE IN TAKING EVIDENCE
Rule 9.1. Who may request assistance. - Any party
to an arbitration, whether domestic or foreign, may
request the court to provide assistance in taking
evidence.
Rule 9.2. When assistance may be sought. -
Assistance may be sought at any time during the
course of the arbitral proceedings when the need
arises.
Rule 9.3. Venue. - A petition for assistance in taking
evidence may, at the option of the petitioner, be filed
with Regional Trial Court where (a) arbitration
proceedings are taking place, (b) the witnesses reside
or may be found, or (c) where the evidence may be
found.
Rule 9.4. Ground. - The court may grant or execute
the request for assistance in taking evidence within its
competence and according to the rules of evidence.
Rule 9.5. Type of assistance. - A party requiring
assistance in the taking of evidence may petition the
court to direct any person, including a representative
of a corporation, association, partnership or other
entity (other than a party to the ADR proceedings or
its officers) found in the Philippines, for any of the
following:
a. To comply with a subpoena ad
testificandum and/or subpoena duces tecum;
b. To appear as a witness before an officer for the
taking of his deposition upon oral examination or by
written interrogatories;
c. To allow the physical examination of the condition
of persons, or the inspection of things or premises
and, when appropriate, to allow the recording and/or
documentation of condition of persons, things or
premises (i.e., photographs, video and other means
of recording/documentation);
d. To allow the examination and copying of
documents; and
e. To perform any similar acts.
Rule 9.6. Contents of the petition. - The petition
must state the following:
a. The fact that there is an ongoing arbitration
proceeding even if such proceeding could not
continue due to some legal impediments;
13
b. The arbitral tribunal ordered the taking of evidence
or the party desires to present evidence to the arbitral
tribunal;
c. Materiality or relevance of the evidence to be
taken; and
d. The names and addresses of the intended
witness/es, place where the evidence may be found,
the place where the premises to be inspected are
located or the place where the acts required are to be
done.
Rule 9.7. Comment/Opposition. - The
comment/opposition must be filed within fifteen (15)
days from service of the petition.
Rule 9.8. Court action. - If the evidence sought is
not privileged, and is material and relevant, the court
shall grant the assistance in taking evidence
requested and shall order petitioner to pay costs
attendant to such assistance.
Rule 9.9. Relief against court action. - The order
granting assistance in taking evidence shall be
immediately executory and not subject to
reconsideration or appeal. If the court declines to
grant assistance in taking evidence, the petitioner
may file a motion for reconsideration or appeal.
Rule 9.10. Perpetuation of testimony before the
arbitral tribunal is constituted. - At anytime before
arbitration is commenced or before the arbitral
tribunal is constituted, any person who desires to
perpetuate his testimony or that of another person
may do so in accordance with Rule 24 of the Rules of
Court.
Rule 9.11. Consequence of disobedience. - The court
may impose the appropriate sanction on any person
who disobeys its order to testify when required or
perform any act required of him.
RULE 10: CONFIDENTIALITY/PROTECTIVE
ORDERS
Rule 10.1. Who may request confidentiality. - A
party, counsel or witness who disclosed or who was
compelled to disclose information relative to the
subject of ADR under circumstances that would create
a reasonable expectation, on behalf of the source,
that the information shall be kept confidential has the
right to prevent such information from being further
disclosed without the express written consent of the
source or the party who made the disclosure.
Rule 10.2. When request made. - A party may
request a protective order at anytime there is a need
to enforce the confidentiality of the information
obtained, or to be obtained, in ADR proceedings.
Rule 10.3. Venue. - A petition for a protective order
may be filed with the Regional Trial Court where that
order would be implemented.
If there is a pending court proceeding in which the
information obtained in an ADR proceeding is required
to be divulged or is being divulged, the party seeking
to enforce the confidentiality of the information may
file a motion with the court where the proceedings
are pending to enjoin the confidential information
from being divulged or to suppress confidential
information.
Rule 10.4. Grounds. - A protective order may be
granted only if it is shown that the applicant would be
materially prejudiced by an unauthorized disclosure of
the information obtained, or to be obtained, during an
ADR proceeding.
Rule 10.5. Contents of the motion or petition. - The
petition or motion must state the following:
a. That the information sought to be protected was
obtained, or would be obtained, during an ADR
proceeding;
b. The applicant would be materially prejudiced by
the disclosure of that information;
c. The person or persons who are being asked to
divulge the confidential information participated in an
ADR proceedings; and
d. The time, date and place when the ADR
proceedings took place.
Apart from the other submissions, the movant must
set the motion for hearing and contain a notice of
hearing in accordance with Rule 15 of the Rules of
Court.
Rule 10.6. Notice. - Notice of a request for a
protective order made through a motion shall be
made to the opposing parties in accordance with Rule
15 of the Rules of Court.
Rule 10.7. Comment/Opposition. - The
comment/opposition must be filed within fifteen (15)
days from service of the petition. The opposition or
comment may be accompanied by written proof that
(a) the information is not confidential, (b) the
information was not obtained during an ADR
proceeding, (c) there was a waiver of confidentiality,
or (d) the petitioner/movant is precluded from
asserting confidentiality.
14
Rule 10.8. Court action. - If the court finds the
petition or motion meritorious, it shall issue an order
enjoining a person or persons from divulging
confidential information.
In resolving the petition or motion, the courts shall be
guided by the following principles applicable to all
ADR proceedings: Confidential information shall not
be subject to discovery and shall be inadmissible in
any adversarial proceeding, whether judicial or quasi
judicial. However, evidence or information that is
otherwise admissible or subject to discovery does not
become inadmissible or protected from discovery
solely by reason of its use therein.
For mediation proceedings, the court shall be further
guided by the following principles:
a. Information obtained through mediation shall be
privileged and confidential.
b. A party, a mediator, or a nonparty participant may
refuse to disclose and may prevent any other person
from disclosing a mediation communication.
c. In such an adversarial proceeding, the following
persons involved or previously involved in a mediation
may not be compelled to disclose confidential
information obtained during the mediation: (1) the
parties to the dispute; (2) the mediator or mediators;
(3) the counsel for the parties: (4) the nonparty
participants; (5) any persons hired or engaged in
connection with the mediation as secretary,
stenographer; clerk or assistant; and (6) any other
person who obtains or possesses confidential
information by reason of his/ her profession.
d. The protection of the ADR Laws shall continue to
apply even if a mediator is found to have failed to act
impartially.
e. A mediator may not be called to testify to provide
information gathered in mediation. A mediator who is
wrongfully subpoenaed shall be reimbursed the full
cost of his attorney fees and related expenses.
Rule 10.9. Relief against court action. - The order
enjoining a person or persons from divulging
confidential information shall be immediately
executory and may not be enjoined while the order is
being questioned with the appellate courts.
If the court declines to enjoin a person or persons
from divulging confidential information, the petitioner
may file a motion for reconsideration or appeal.
Rule 10.10. Consequence of disobedience. - Any
person who disobeys the order of the court to cease
from divulging confidential information shall be
imposed the proper sanction by the court.
RULE 11: CONFIRMATION, CORRECTION OR
VACATION OF AWARD IN DOMESTIC
ARBITRATION
Rule 11.1. Who may request confirmation,
correction or vacation. - Any party to a domestic
arbitration may petition the court to confirm, correct
or vacate a domestic arbitral award.
Rule 11.2. When to request confirmation,
correction/modification or vacation. -
(A) Confirmation. - At any time after the lapse of
thirty (30) days from receipt by the petitioner of the
arbitral award, he may petition the court to confirm
that award.
(B) Correction/Modification. - Not later than thirty
(30) days from receipt of the arbitral award, a party
may petition the court to correct/modify that award.
(C) Vacation. - Not later than thirty (30) days from
receipt of the arbitral award, a party may petition the
court to vacate that award.
(D) A petition to vacate the arbitral award may be
filed, in opposition to a petition to confirm the arbitral
award, not later than thirty (30) days from receipt of
the award by the petitioner. A petition to vacate the
arbitral award filed beyond the reglementary period
shall be dismissed.
(E) A petition to confirm the arbitral award may be
filed, in opposition to a petition to vacate the arbitral
award, at any time after the petition to vacate such
arbitral award is filed. The dismissal of the petition to
vacate the arbitral award for having been filed beyond
the reglementary period shall not result in the
dismissal of the petition for the confirmation of such
arbitral award.
(F) The filing of a petition to confirm an arbitral award
shall not authorize the filing of a belated petition to
vacate or set aside such award in opposition thereto.
(G) A petition to correct an arbitral award may be
included as part of a petition to confirm the arbitral
award or as a petition to confirm that award.
Rule 11.3. Venue. - The petition for confirmation,
correction/modification or vacation of a domestic
arbitral award may be filed with Regional Trial Court
having jurisdiction over the place in which one of the
parties is doing business, where any of the parties
reside or where arbitration proceedings were
conducted.
15
Rule 11.4. Grounds. - (A) To vacate an arbitral
award. - The arbitral award may be vacated on the
following grounds:
a. The arbitral award was procured through
corruption, fraud or other undue means;
b. There was evident partiality or corruption in the
arbitral tribunal or any of its members;
c. The arbitral tribunal was guilty of misconduct or
any form of misbehavior that has materially
prejudiced the rights of any party such as refusing to
postpone a hearing upon sufficient cause shown or to
hear evidence pertinent and material to the
controversy;
d. One or more of the arbitrators was disqualified to
act as such under the law and willfully refrained from
disclosing such disqualification; or
e. The arbitral tribunal exceeded its powers, or so
imperfectly executed them, such that a complete,
final and definite award upon the subject matter
submitted to them was not made.
The award may also be vacated on any or all of the
following grounds:
a. The arbitration agreement did not exist, or is
invalid for any ground for the revocation of a contract
or is otherwise unenforceable; or
b. A party to arbitration is a minor or a person
judicially declared to be incompetent.
The petition to vacate an arbitral award on the
ground that the party to arbitration is a minor or a
person judicially declared to be incompetent shall be
filed only on behalf of the minor or incompetent and
shall allege that (a) the other party to arbitration had
knowingly entered into a submission or agreement
with such minor or incompetent, or (b) the
submission to arbitration was made by a guardian or
guardian ad litem who was not authorized to do so by
a competent court.
In deciding the petition to vacate the arbitral award,
the court shall disregard any other ground than those
enumerated above.
(B) To correct/modify an arbitral award. - The Court
may correct/modify or order the arbitral tribunal to
correct/modify the arbitral award in the following
cases:
a. Where there was an evident miscalculation of
figures or an evident mistake in the description of any
person, thing or property referred to in the award;
b. Where the arbitrators have awarded upon a matter
not submitted to them, not affecting the merits of the
decision upon the matter submitted;
c. Where the arbitrators have omitted to resolve an
issue submitted to them for resolution; or
d. Where the award is imperfect in a matter of form
not affecting the merits of the controversy, and if it
had been a commissioners report, the defect could
have been amended or disregarded by the Court.
Rule 11.5. Form of petition. - An application to
vacate an arbitral award shall be in the form of a
petition to vacate or as a petition to vacate in
opposition to a petition to confirm the same award.
An application to correct/modify an arbitral award
may be included in a petition to confirm an arbitral
award or in a petition to vacate in opposition to
confirm the same award.
When a petition to confirm an arbitral award is
pending before a court, the party seeking to vacate or
correct/modify said award may only apply for those
reliefs through a petition to vacate or correct/modify
the award in opposition to the petition to confirm the
award provided that such petition to vacate or
correct/modify is filed within thirty (30) days from his
receipt of the award. A petition to vacate or
correct/modify an arbitral award filed in another court
or in a separate case before the same court shall be
dismissed, upon appropriate motion, as a violation of
the rule against forum-shopping.
When a petition to vacate or correct/modify an
arbitral award is pending before a court, the party
seeking to confirm said award may only apply for that
relief through a petition to confirm the same award in
opposition to the petition to vacate or correct/modify
the award. A petition to confirm or correct/modify an
arbitral award filed as separate proceeding in another
court or in a different case before the same court
shall be dismissed, upon appropriate motion, as a
violation of the rule against forum shopping.
As an alternative to the dismissal of a second petition
for confirmation, vacation or correction/modification
of an arbitral award filed in violation of the non-forum
shopping rule, the court or courts concerned may
allow the consolidation of the two proceedings in one
court and in one case.
Where the petition to confirm the award and petition
to vacate or correct/modify were simultaneously filed
by the parties in the same court or in different courts
in the Philippines, upon motion of either party, the
16
court may order the consolidation of the two cases
before either court.
In all instances, the petition must be verified by a
person who has knowledge of the jurisdictional facts.
Rule 11.6. Contents of petition. - The petition must
state the following:
a. The addresses of the parties and any change
thereof;
b. The jurisdictional issues raised by a party during
arbitration proceedings;
c. The grounds relied upon by the parties in seeking
the vacation of the arbitral award whether the petition
is a petition for the vacation or setting aside of the
arbitral award or a petition in opposition to a petition
to confirm the award; and
d. A statement of the date of receipt of the arbitral
award and the circumstances under which it was
received by the petitioner.
Apart from other submissions, the petitioner must
attach to the petition the following:
a. An authentic copy of the arbitration agreement;
b. An authentic copy of the arbitral award;
c. A certification against forum shopping executed by
the applicant in accordance with Section 5 of Rule 7
of the Rules of Court; and
d. An authentic copy or authentic copies of the
appointment of an arbitral tribunal.
Rule 11.7. Notice. - Upon finding that the petition
filed under this Rule is sufficient both in form and in
substance, the Court shall cause notice and a copy of
the petition to be delivered to the respondent
allowing him to file a comment or opposition thereto
within fifteen (15) days from receipt of the petition. In
lieu of an opposition, the respondent may file a
petition in opposition to the petition.
The petitioner may within fifteen (15) days from
receipt of the petition in opposition thereto file a
reply.
Rule 11.8. Hearing. - If the Court finds from the
petition or petition in opposition thereto that there are
issues of fact, it shall require the parties, within a
period of not more than fifteen (15) days from receipt
of the order, to simultaneously submit the affidavits
of all of their witnesses and reply affidavits within ten
(10) days from receipt of the affidavits to be replied
to. There shall be attached to the affidavits or reply
affidavits documents relied upon in support of the
statements of fact in such affidavits or reply affidavits.
If the petition or the petition in opposition thereto is
one for vacation of an arbitral award, the interested
party in arbitration may oppose the petition or the
petition in opposition thereto for the reason that the
grounds cited in the petition or the petition in
opposition thereto, assuming them to be true, do not
affect the merits of the case and may be cured or
remedied. Moreover, the interested party may request
the court to suspend the proceedings for vacation for
a period of time and to direct the arbitral tribunal to
reopen and conduct a new hearing and take such
other action as will eliminate the grounds for vacation
of the award. The opposition shall be supported by a
brief of legal arguments to show the existence of a
sufficient legal basis for the opposition.
If the ground of the petition to vacate an arbitral
award is that the arbitration agreement did not exist,
is invalid or otherwise unenforceable, and an earlier
petition for judicial relief under Rule 3 had been filed,
a copy of such petition and of the decision or final
order of the court shall be attached thereto. But if the
ground was raised before the arbitral tribunal in a
motion to dismiss filed not later than the submission
of its answer, and the arbitral tribunal ruled in favor
of its own jurisdiction as a preliminary question which
was appealed by a party to the Regional Trial Court, a
copy of the order, ruling or preliminary award or
decision of the arbitral tribunal, the appeal therefrom
to the Court and the order or decision of the Court
shall all be attached to the petition.
If the ground of the petition is that the petitioner is
an infant or a person judicially declared to be
incompetent, there shall be attached to the petition
certified copies of documents showing such fact. In
addition, the petitioner shall show that even if the
submission or arbitration agreement was entered into
by a guardian or guardian ad litem, the latter was not
authorized by a competent court to sign such the
submission or arbitration agreement.
If on the basis of the petition, the opposition, the
affidavits and reply affidavits of the parties, the court
finds that there is a need to conduct an oral hearing,
the court shall set the case for hearing. This case
shall have preference over other cases before the
court, except criminal cases. During the hearing, the
affidavits of witnesses shall take the place of their
direct testimonies and they shall immediately be
subject to cross-examination thereon. The Court shall
have full control over the proceedings in order to
ensure that the case is heard without undue delay.
17
Rule 11.9. Court action. - Unless a ground to vacate
an arbitral award under Rule 11.5 above is fully
established, the court shall confirm the award.
An arbitral award shall enjoy the presumption that it
was made and released in due course of arbitration
and is subject to confirmation by the court
In resolving the petition or petition in opposition
thereto in accordance with these Special ADR Rules,
the court shall either confirm or vacate the arbitral
award. The court shall not disturb the arbitral
tribunals determination of facts and/or interpretation
of law.
In a petition to vacate an award or in petition to
vacate an award in opposition to a petition to confirm
the award, the petitioner may simultaneously apply
with the Court to refer the case back to the same
arbitral tribunal for the purpose of making a new or
revised award or to direct a new hearing, or in the
appropriate case, order the new hearing before a new
arbitral tribunal, the members of which shall be
chosen in the manner provided in the arbitration
agreement or submission, or the law. In the latter
case, any provision limiting the time in which the
arbitral tribunal may make a decision shall be deemed
applicable to the new arbitral tribunal.
In referring the case back to the arbitral tribunal or to
a new arbitral tribunal pursuant to Rule 24 of Republic
Act No. 876, the court may not direct it to revise its
award in a particular way, or to revise its findings of
fact or conclusions of law or otherwise encroach upon
the independence of an arbitral tribunal in the making
of a final award.
RULE 12: RECOGNITION AND ENFORCEMENT
OR SETTING ASIDE OF AN
INTERNATIONALCOMMERCIAL ARBITRATION
AWARD
Rule 12.1. Who may request recognition and
enforcement or setting aside. - Any party to an
international commercial arbitration in the Philippines
may petition the proper court to recognize and
enforce or set aside an arbitral award.
Rule 12.2. When to file petition. - (A) Petition to
recognize and enforce. - The petition for enforcement
and recognition of an arbitral award may be filed
anytime from receipt of the award. If, however, a
timely petition to set aside an arbitral award is filed,
the opposing party must file therein and in opposition
thereto the petition for recognition and enforcement
of the same award within the period for filing an
opposition.
(B) Petition to set aside. - The petition to set aside an
arbitral award may only be filed within three (3)
months from the time the petitioner receives a copy
thereof. If a timely request is made with the arbitral
tribunal for correction, interpretation or additional
award, the three (3) month period shall be counted
from the time the petitioner receives the resolution by
the arbitral tribunal of that request.
A petition to set aside can no longer be filed after the
lapse of the three (3) month period. The dismissal of
a petition to set aside an arbitral award for being
time-barred shall not automatically result in the
approval of the petition filed therein and in opposition
thereto for recognition and enforcement of the same
award. Failure to file a petition to set aside shall
preclude a party from raising grounds to resist
enforcement of the award.
Rule 12.3. Venue. - A petition to recognize and
enforce or set aside an arbitral award may, at the
option of the petitioner, be filed with the Regional
Trial Court: (a) where arbitration proceedings were
conducted; (b) where any of the assets to be
attached or levied upon is located; (c) where the act
to be enjoined will be or is being performed; (d)
where any of the parties to arbitration resides or has
its place of business; or (e) in the National Capital
Judicial Region.
Rule 12.4. Grounds to set aside or resist
enforcement. - The court may set aside or refuse the
enforcement of the arbitral award only if:
a. The party making the application furnishes proof
that:
(i). A party to the arbitration agreement was under
some incapacity, or the said agreement is not valid
under the law to which the parties have subjected it
or, failing any indication thereof, under Philippine law;
or
(ii). The party making the application to set aside or
resist enforcement was not given proper notice of the
appointment of an arbitrator or of the arbitral
proceedings or was otherwise unable to present his
case; or
(iii). The award deals with a dispute not contemplated
by or not falling within the terms of the submission to
arbitration, or contains decisions on matters beyond
the scope of the submission to arbitration; provided
that, if the decisions on matters submitted to
arbitration can be separated from those not so
submitted, only that part of the award which contains
decisions on matters not submitted to arbitration may
be set aside or only that part of the award which
18
contains decisions on matters submitted to arbitration
may be enforced; or
(iv). The composition of the arbitral tribunal or the
arbitral procedure was not in accordance with the
agreement of the parties, unless such agreement was
in conflict with a provision of Philippine law from
which the parties cannot derogate, or, failing such
agreement, was not in accordance with Philippine
law;
b. The court finds that:
(i). The subject-matter of the dispute is not capable
of settlement by arbitration under the law of the
Philippines; or
(ii). The recognition or enforcement of the award
would be contrary to public policy.
In deciding the petition, the Court shall disregard any
other ground to set aside or enforce the arbitral
award other than those enumerated above.
The petition to set-aside or a pleading resisting the
enforcement of an arbitral award on the ground that
a party was a minor or an incompetent shall be filed
only on behalf of the minor or incompetent and shall
allege that (a) the other party to arbitration had
knowingly entered into a submission or agreement
with such minor or incompetent, or (b) the
submission to arbitration was made by a guardian or
guardian ad litem who was not authorized to do so by
a competent court.
Rule 12.5. Exclusive recourse against arbitral award.
- Recourse to a court against an arbitral award shall
be made only through a petition to set aside the
arbitral award and on grounds prescribed by the law
that governs international commercial arbitration. Any
other recourse from the arbitral award, such as by
appeal or petition for review or petition for certiorari
or otherwise, shall be dismissed by the court.
Rule 12.6. Form. - The application to recognize and
enforce or set aside an arbitral award, whether made
through a petition to recognize and enforce or to set
aside or as a petition to set aside the award in
opposition thereto, or through a petition to set aside
or petition to recognize and enforce in opposition
thereto, shall be verified by a person who has
personal knowledge of the facts stated therein.
When a petition to recognize and enforce an arbitral
award is pending, the application to set it aside, if not
yet time-barred, shall be made through a petition to
set aside the same award in the same proceedings.
When a timely petition to set aside an arbitral award
is filed, the opposing party may file a petition for
recognition and enforcement of the same award in
opposition thereto.
Rule 12.7. Contents of petition. - (A) Petition to
recognize and enforce. - The petition to recognize and
enforce or petition to set aside in opposition thereto,
or petition to set aside or petition to recognize and
enforce in opposition thereto, shall state the
following:
a. The addresses of record, or any change thereof, of
the parties to arbitration;
b. A statement that the arbitration agreement or
submission exists;
c. The names of the arbitrators and proof of their
appointment;
d. A statement that an arbitral award was issued and
when the petitioner received it; and
e. The relief sought.
Apart from other submissions, the petitioner shall
attach to the petition the following:
a. An authentic copy of the arbitration agreement;
b. An authentic copy of the arbitral award;
c. A verification and certification against forum
shopping executed by the applicant in accordance
with Sections 4 and 5 of Rule 7 of the Rules of Court;
and
d. An authentic copy or authentic copies of the
appointment of an arbitral tribunal.
(B) Petition to set aside. - The petition to set aside or
petition to set aside in opposition to a petition to
recognize and enforce an arbitral award in
international commercial arbitration shall have the
same contents as a petition to recognize and enforce
or petition to recognize and enforce in opposition to a
petition to set aside an arbitral award. In addition, the
said petitions should state the grounds relied upon to
set it aside.
Further, if the ground of the petition to set aside is
that the petitioner is a minor or found incompetent by
a court, there shall be attached to the petition
certified copies of documents showing such fact. In
addition, the petitioner shall show that even if the
submission or arbitration agreement was entered into
by a guardian or guardian ad litem, the latter was not
19
authorized by a competent court to sign such the
submission or arbitration agreement.
In either case, if another court was previously
requested to resolve and/or has resolved, on appeal,
the arbitral tribunals preliminary determination in
favor of its own jurisdiction, the petitioner shall
apprise the court before which the petition to
recognize and enforce or set aside is pending of the
status of the appeal or its resolution.
Rule 12.8. Notice. - Upon finding that the petition
filed under this Rule is sufficient both in form and in
substance, the court shall cause notice and a copy of
the petition to be delivered to the respondent
directing him to file an opposition thereto within
fifteen (15) days from receipt of the petition. In lieu
of an opposition, the respondent may file a petition to
set aside in opposition to a petition to recognize and
enforce, or a petition to recognize and enforce in
opposition to a petition to set aside.
The petitioner may within fifteen (15) days from
receipt of the petition to set aside in opposition to a
petition to recognize and enforce, or from receipt of
the petition to recognize and enforce in opposition to
a petition to set aside, file a reply.
Rule 12.9. Submission of documents. - If the court
finds that the issue between the parties is mainly one
of law, the parties may be required to submit briefs of
legal arguments, not more than fifteen (15) days from
receipt of the order, sufficiently discussing the legal
issues and the legal basis for the relief prayed for by
each of them.
If the court finds from the petition or petition in
opposition thereto that there are issues of fact
relating to the ground(s) relied upon for the court to
set aside, it shall require the parties within a period of
not more than fifteen (15) days from receipt of the
order simultaneously to submit the affidavits of all of
their witnesses and reply affidavits within ten (10)
days from receipt of the affidavits to be replied to.
There shall be attached to the affidavits or reply
affidavits, all documents relied upon in support of the
statements of fact in such affidavits or reply affidavits.
Rule 12.10. Hearing. - If on the basis of the petition,
the opposition, the affidavits and reply affidavits of
the parties, the court finds that there is a need to
conduct an oral hearing, the court shall set the case
for hearing. This case shall have preference over
other cases before the court, except criminal cases.
During the hearing, the affidavits of witnesses shall
take the place of their direct testimonies and they
shall immediately be subject to cross-examination
thereon. The court shall have full control over the
proceedings in order to ensure that the case is heard
without undue delay.
Rule 12.11. Suspension of proceedings to set aside.
- The court when asked to set aside an arbitral award
may, where appropriate and upon request by a party,
suspend the proceedings for a period of time
determined by it to give the arbitral tribunal an
opportunity to resume the arbitral proceedings or to
take such other action as in the arbitral tribunals
opinion will eliminate the grounds for setting aside.
The court, in referring the case back to the arbitral
tribunal may not direct it to revise its award in a
particular way, or to revise its findings of fact or
conclusions of law or otherwise encroach upon the
independence of an arbitral tribunal in the making of
a final award.
The court when asked to set aside an arbitral award
may also, when the preliminary ruling of an arbitral
tribunal affirming its jurisdiction to act on the matter
before it had been appealed by the party aggrieved
by such preliminary ruling to the court, suspend the
proceedings to set aside to await the ruling of the
court on such pending appeal or, in the alternative,
consolidate the proceedings to set aside with the
earlier appeal.
Rule 12.12. Presumption in favor of confirmation. -
It is presumed that an arbitral award was made and
released in due course and is subject to enforcement
by the court, unless the adverse party is able to
establish a ground for setting aside or not enforcing
an arbitral award.
Rule 12.13. Judgment of the court. - Unless a
ground to set aside an arbitral award under Rule 12.4
above is fully established, the court shall dismiss the
petition. If, in the same proceedings, there is a
petition to recognize and enforce the arbitral award
filed in opposition to the petition to set aside, the
court shall recognize and enforce the award.
In resolving the petition or petition in opposition
thereto in accordance with the Special ADR Rules, the
court shall either set aside or enforce the arbitral
award. The court shall not disturb the arbitral
tribunals determination of facts and/or interpretation
of law.
Rule 12.14. Costs. - Unless otherwise agreed upon
by the parties in writing, at the time the case is
submitted to the court for decision, the party praying
for recognition and enforcement or setting aside of an
arbitral award shall submit a statement under oath
confirming the costs he has incurred only in the
20
proceedings for such recognition and enforcement or
setting aside. The costs shall include the attorneys
fees the party has paid or is committed to pay to his
counsel of record.
The prevailing party shall be entitled to an award of
costs, which shall include reasonable attorneys fees
of the prevailing party against the unsuccessful party.
The court shall determine the reasonableness of the
claim for attorneys fees.
RULE 13: RECOGNITION AND ENFORCEMENT
OF A FOREIGN ARBITRAL AWARD
Rule 13.1. Who may request recognition and
enforcement. - Any party to a foreign arbitration may
petition the court to recognize and enforce a foreign
arbitral award.
Rule 13.2. When to petition. - At any time after
receipt of a foreign arbitral award, any party to
arbitration may petition the proper Regional Trial
Court to recognize and enforce such award.
Rule 13.3. Venue. - The petition to recognize and
enforce a foreign arbitral award shall be filed, at the
option of the petitioner, with the Regional Trial Court
(a) where the assets to be attached or levied upon is
located, (b) where the act to be enjoined is being
performed, (c) in the principal place of business in the
Philippines of any of the parties, (d) if any of the
parties is an individual, where any of those individuals
resides, or (e) in the National Capital Judicial Region.
Rule 13.4. Governing law and grounds to refuse
recognition and enforcement. - The recognition and
enforcement of a foreign arbitral award shall be
governed by the 1958 New York Convention on the
Recognition and Enforcement of Foreign Arbitral
Awards (the "New York Convention") and this Rule.
The court may, upon grounds of comity and
reciprocity, recognize and enforce a foreign arbitral
award made in a country that is not a signatory to the
New York Convention as if it were a Convention
Award.
A Philippine court shall not set aside a foreign arbitral
award but may refuse it recognition and enforcement
on any or all of the following grounds:
a. The party making the application to refuse
recognition and enforcement of the award furnishes
proof that:
(i). A party to the arbitration agreement was under
some incapacity; or the said agreement is not valid
under the law to which the parties have subjected it
or, failing any indication thereof, under the law of the
country where the award was made; or
(ii). The party making the application was not given
proper notice of the appointment of an arbitrator or of
the arbitral proceedings or was otherwise unable to
present his case; or
(iii). The award deals with a dispute not contemplated
by or not falling within the terms of the submission to
arbitration, or contains decisions on matters beyond
the scope of the submission to arbitration; provided
that, if the decisions on matters submitted to
arbitration can be separated from those not so
submitted, only that part of the award which contains
decisions on matters not submitted to arbitration may
be set aside; or
(iv). The composition of the arbitral tribunal or the
arbitral procedure was not in accordance with the
agreement of the parties or, failing such agreement,
was not in accordance with the law of the country
where arbitration took place; or
(v). The award has not yet become binding on the
parties or has been set aside or suspended by a court
of the country in which that award was made; or
b. The court finds that:
(i). The subject-matter of the dispute is not capable
of settlement or resolution by arbitration under
Philippine law; or
(ii). The recognition or enforcement of the award
would be contrary to public policy.
The court shall disregard any ground for opposing the
recognition and enforcement of a foreign arbitral
award other than those enumerated above.
Rule 13.5. Contents of petition. - The petition shall
state the following:
a. The addresses of the parties to arbitration;
b. In the absence of any indication in the award, the
country where the arbitral award was made and
whether such country is a signatory to the New York
Convention; and
c. The relief sought.
Apart from other submissions, the petition shall have
attached to it the following:
a. An authentic copy of the arbitration agreement;
and
b. An authentic copy of the arbitral award.
21
If the foreign arbitral award or agreement to arbitrate
or submission is not made in English, the petitioner
shall also attach to the petition a translation of these
documents into English. The translation shall be
certified by an official or sworn translator or by a
diplomatic or consular agent.
Rule 13.6. Notice and opposition. - Upon finding that
the petition filed under this Rule is sufficient both in
form and in substance, the court shall cause notice
and a copy of the petition to be delivered to the
respondent allowing him to file an opposition thereto
within thirty (30) days from receipt of the notice and
petition.
Rule 13.7. Opposition. - The opposition shall be
verified by a person who has personal knowledge of
the facts stated therein.
Rule 13.8. Submissions. - If the court finds that the
issue between the parties is mainly one of law, the
parties may be required to submit briefs of legal
arguments, not more than thirty (30) days from
receipt of the order, sufficiently discussing the legal
issues and the legal bases for the relief prayed for by
each other.
If, from a review of the petition or opposition, there
are issues of fact relating to the ground/s relied upon
for the court to refuse enforcement, the court
shall, motu proprio or upon request of any party,
require the parties to simultaneously submit the
affidavits of all of their witnesses within a period of
not less than fifteen (15) days nor more than thirty
(30) days from receipt of the order. The court may,
upon the request of any party, allow the submission
of reply affidavits within a period of not less than
fifteen (15) days nor more than thirty (30) days from
receipt of the order granting said request. There shall
be attached to the affidavits or reply affidavits all
documents relied upon in support of the statements
of fact in such affidavits or reply affidavits.
Rule 13.9. Hearing. - The court shall set the case for
hearing if on the basis of the foregoing submissions
there is a need to do so. The court shall give due
priority to hearings on petitions under this Rule.
During the hearing, the affidavits of witnesses shall
take the place of their direct testimonies and they
shall immediately be subject to cross-examination.
The court shall have full control over the proceedings
in order to ensure that the case is heard without
undue delay.
Rule 13.10. Adjournment/deferment of decision on
enforcement of award. - The court before which a
petition to recognize and enforce a foreign arbitral
award is pending, may adjourn or defer rendering a
decision thereon if, in the meantime, an application
for the setting aside or suspension of the award has
been made with a competent authority in the country
where the award was made. Upon application of the
petitioner, the court may also require the other party
to give suitable security.
Rule 13.11. Court action. - It is presumed that a
foreign arbitral award was made and released in due
course of arbitration and is subject to enforcement by
the court.
The court shall recognize and enforce a foreign
arbitral award unless a ground to refuse recognition
or enforcement of the foreign arbitral award under
this rule is fully established.
The decision of the court recognizing and enforcing a
foreign arbitral award is immediately executory.
In resolving the petition for recognition and
enforcement of a foreign arbitral award in accordance
with these Special ADR Rules, the court shall either
[a] recognize and/or enforce or [b] refuse to
recognize and enforce the arbitral award. The court
shall not disturb the arbitral tribunals determination
of facts and/or interpretation of law.
Rule 13.12. Recognition and enforcement of non-
convention award. - The court shall, only upon
grounds provided by these Special ADR Rules,
recognize and enforce a foreign arbitral award made
in a country not a signatory to the New York
Convention when such country extends comity and
reciprocity to awards made in the Philippines. If that
country does not extend comity and reciprocity to
awards made in the Philippines, the court may
nevertheless treat such award as a foreign judgment
enforceable as such under Rule 39, Section 48, of the
Rules of Court.
PART III
PROVISIONS SPECIFIC TO MEDIATION
RULE 14: GENERAL PROVISIONS
Rule 14.1. Application of the rules on arbitration. -
Whenever applicable and appropriate, the pertinent
rules on arbitration shall be applied in proceedings
before the court relative to a dispute subject to
mediation.
RULE 15: DEPOSIT AND ENFORCEMENT OF
MEDIATED SETTLEMENT AGREEMENTS
Rule 15.1. Who makes a deposit. - Any party to a
mediation that is not court-annexed may deposit with
22
the court the written settlement agreement, which
resulted from that mediation.
Rule 15.2. When deposit is made. - At any time after
an agreement is reached, the written settlement
agreement may be deposited.
Rule 15.3. Venue. - The written settlement
agreement may be jointly deposited by the parties or
deposited by one party with prior notice to the other
party/ies with the Clerk of Court of the Regional Trial
Court (a) where the principal place of business in the
Philippines of any of the parties is located; (b) if any
of the parties is an individual, where any of those
individuals resides; or (c) in the National Capital
Judicial Region.
Rule 15.4. Registry Book. - The Clerk of Court of
each Regional Trial Court shall keep a Registry Book
that shall chronologically list or enroll all the mediated
settlement agreements/settlement awards that are
deposited with the court as well as the names and
address of the parties thereto and the date of
enrollment and shall issue a Certificate of Deposit to
the party that made the deposit.
Rule 15.5. Enforcement of mediated settlement
agreement. - Any of the parties to a mediated
settlement agreement, which was deposited with the
Clerk of Court of the Regional Trial Court, may, upon
breach thereof, file a verified petition with the same
court to enforce said agreement.
Rule 15.6. Contents of petition. - The verified
petition shall:
a. Name and designate, as petitioner or respondent,
all parties to the mediated settlement agreement and
those who may be affected by it;
b. State the following:
(i). The addresses of the petitioner and respondents;
and
(ii). The ultimate facts that would show that the
adverse party has defaulted to perform its obligation
under said agreement; and
c. Have attached to it the following:
(i). An authentic copy of the mediated settlement
agreement; and
(ii). Certificate of Deposit showing that the mediated
settlement agreement was deposited with the Clerk of
Court.
Rule 15.7. Opposition. - The adverse party may file
an opposition, within fifteen (15) days from receipt of
notice or service of the petition, by submitting written
proof of compliance with the mediated settlement
agreement or such other affirmative or negative
defenses it may have.
Rule 15.8. Court action. - After a summary hearing,
if the court finds that the agreement is a valid
mediated settlement agreement, that there is no
merit in any of the affirmative or negative defenses
raised, and the respondent has breached that
agreement, in whole or in part, the court shall order
the enforcement thereof; otherwise, it shall dismiss
the petition.
PART IV
PROVISIONS SPECIFIC TO CONSTRUCTION
ARBITRATION
RULE 16: GENERAL PROVISIONS
Rule 16.1. Application of the rules on arbitration. -
Whenever applicable and appropriate, the rules on
arbitration shall be applied in proceedings before the
court relative to a dispute subject to construction
arbitration.
RULE 17: REFERRAL TO CIAC
Rule 17.1. Dismissal of action. - A Regional Trial
Court before which a construction dispute is filed
shall, upon becoming aware that the parties have
entered into an arbitration agreement, motu
proprio or upon motion made not later than the pre-
trial, dismiss the case and refer the parties to
arbitration to be conducted by the Construction
Industry Arbitration Commission (CIAC), unless all
parties to arbitration, assisted by their respective
counsel, submit to the court a written agreement
making the court, rather than the CIAC, the body that
would exclusively resolve the dispute.
Rule 17.2. Form and contents of motion. - The
request for dismissal of the civil action and referral to
arbitration shall be through a verified motion that
shall (a) contain a statement showing that the dispute
is a construction dispute; and (b) be accompanied by
proof of the existence of the arbitration agreement.
If the arbitration agreement or other document
evidencing the existence of that agreement is already
part of the record, those documents need not be
submitted to the court provided that the movant has
cited in the motion particular references to the
records where those documents may be found.
23
The motion shall also contain a notice of hearing
addressed to all parties and shall specify the date and
time when the motion will be heard, which must not
be later than fifteen (15) days after the filing of the
motion. The movant shall ensure receipt by all parties
of the motion at least three days before the date of
the hearing.
Rule 17.3. Opposition. - Upon receipt of the motion
to refer the dispute to arbitration by CIAC, the other
party may file an opposition to the motion on or
before the day such motion is to be heard. The
opposition shall clearly set forth the reasons why the
court should not dismiss the case.
Rule 17.4. Hearing. - The court shall hear the motion
only once and for the purpose of clarifying relevant
factual and legal issues.
Rule 17.5. Court action. - If the other parties fail to
file their opposition on or before the day of the
hearing, the court shall motu proprio resolve the
motion only on the basis of the facts alleged in the
motion.
After hearing, the court shall dismiss the civil action
and refer the parties to arbitration if it finds, based on
the pleadings and supporting documents submitted by
the parties, that there is a valid and enforceable
arbitration agreement involving a construction
dispute. Otherwise, the court shall proceed to hear
the case.
All doubts shall be resolved in favor of the existence
of a construction dispute and the arbitration
agreement.
Rule 17.6. Referral immediately executory. - An
order dismissing the case and referring the dispute to
arbitration by CIAC shall be immediately executory.
Rule 17.7. Multiple actions and parties. - The court
shall not decline to dismiss the civil action and make a
referral to arbitration by CIAC for any of the following
reasons:
a. Not all of the disputes subject of the civil action
may be referred to arbitration;
b. Not all of the parties to the civil action are bound
by the arbitration agreement and referral to
arbitration would result in multiplicity of suits;
c. The issues raised in the civil action could be
speedily and efficiently resolved in its entirety by the
Court rather than in arbitration;
d. Referral to arbitration does not appear to be the
most prudent action; or
e. Dismissal of the civil action would prejudice the
rights of the parties to the civil action who are not
bound by the arbitration agreement.
The court may, however, issue an order directing the
inclusion in arbitration of those parties who are bound
by the arbitration agreement directly or by reference
thereto pursuant to Section 34 of Republic Act No.
9285.
Furthermore, the court shall issue an order directing
the case to proceed with respect to the parties not
bound by the arbitration agreement.
Rule 17.8. Referral - If the parties manifest that they
have agreed to submit all or part of their dispute
pending with the court to arbitration by CIAC, the
court shall refer them to CIAC for arbitration.
PART V
PROVISIONS SPECIFIC TO OTHER FORMS OF
ADR
RULE 18: GENERAL PROVISIONS
Rule 18.1. Applicability of rules to other forms of
ADR. - This rule governs the procedure for matters
brought before the court involving the following forms
of ADR:
a. Early neutral evaluation;
b. Neutral evaluation;
c. Mini-trial;
d. Mediation-arbitration;
e. A combination thereof; or
f. Any other ADR form.
Rule 18.2. Applicability of the rules on mediation. - If
the other ADR form/process is more akin to mediation
(i.e., the neutral third party merely assists the parties
in reaching a voluntary agreement), the herein rules
on mediation shall apply.
Rule 18.3. Applicability of rules on arbitration.-If the
other ADR form/process is more akin to arbitration
(i.e., the neutral third party has the power to make a
binding resolution of the dispute), the herein rules on
arbitration shall apply.
Rule 18.4. Referral. - If a dispute is already before a
court, either party may before and during pre-trial,
file a motion for the court to refer the parties to other
ADR forms/processes. At any time during court
proceedings, even after pre-trial, the parties may
jointly move for suspension of the action pursuant to
24
Article 2030 of the Civil Code of the Philippines where
the possibility of compromise is shown.
Rule 18.5. Submission of settlement agreement. -
Either party may submit to the court, before which
the case is pending, any settlement agreement
following a neutral or an early neutral evaluation,
mini-trial or mediation-arbitration.
PART VI
MOTION FOR RECONSIDERATION, APPEAL AND
CERTIORARI
RULE 19: MOTION FOR RECONSIDERATION,
APPEAL AND CERTIORARI
A. MOTION FOR RECONSIDERATION
Rule 19.1. Motion for reconsideration, when allowed.
- A party may ask the Regional Trial to reconsider its
ruling on the following:
a. That the arbitration agreement is inexistent, invalid
or unenforceable pursuant to Rule 3.10 (B);
b. Upholding or reversing the arbitral tribunals
jurisdiction pursuant to Rule 3.19;
c. Denying a request to refer the parties to
arbitration;
d. Granting or denying a party an interim measure of
protection;
e. Denying a petition for the appointment of an
arbitrator;
f. Refusing to grant assistance in taking evidence;
g. Enjoining or refusing to enjoin a person from
divulging confidential information;
h. Confirming, vacating or correcting a domestic
arbitral award;
i. Suspending the proceedings to set aside an
international commercial arbitral award and referring
the case back to the arbitral tribunal;
j. Setting aside an international commercial arbitral
award;
k. Dismissing the petition to set aside an international
commercial arbitral award, even if the court does not
recognize and/or enforce the same;
l. Recognizing and/or enforcing, or dismissing a
petition to recognize and/or enforce an international
commercial arbitral award;
m. Declining a request for assistance in taking
evidence;
n. Adjourning or deferring a ruling on a petition to set
aside, recognize and/or enforce an international
commercial arbitral award;
o. Recognizing and/or enforcing a foreign arbitral
award, or refusing recognition and/or enforcement of
the same; and
p. Granting or dismissing a petition to enforce a
deposited mediated settlement agreement.
No motion for reconsideration shall be allowed from
the following rulings of the Regional Trial Court:
a. A prima facie determination upholding the
existence, validity or enforceability of an arbitration
agreement pursuant to Rule 3.1 (A);
b. An order referring the dispute to arbitration;
c. An order appointing an arbitrator;
d. Any ruling on the challenge to the appointment of
an arbitrator;
e. Any order resolving the issue of the termination of
the mandate of an arbitrator; and
f. An order granting assistance in taking evidence.
Rule 19.2. When to move for reconsideration. - A
motion for reconsideration may be filed with the
Regional Trial Court within a non-extendible period of
fifteen (15) days from receipt of the questioned ruling
or order.
Rule 19.3. Contents and notice. - The motion shall
be made in writing stating the ground or grounds
therefor and shall be filed with the court and served
upon the other party or parties.
Rule 19.4. Opposition or comment. - Upon receipt of
the motion for reconsideration, the other party or
parties shall have a non-extendible period of fifteen
(15) days to file his opposition or comment.
Rule 19.5. Resolution of motion. - A motion for
reconsideration shall be resolved within thirty (30)
days from receipt of the opposition or comment or
upon the expiration of the period to file such
opposition or comment.
Rule 19.6. No second motion for reconsideration. -
No party shall be allowed a second motion for
reconsideration.
25
B. GENERAL PROVISIONS ON APPEAL AND
CERTIORARI
Rule 19.7. No appeal or certiorari on the merits of
an arbitral award. - An agreement to refer a dispute
to arbitration shall mean that the arbitral award shall
be final and binding. Consequently, a party to an
arbitration is precluded from filing an appeal or a
petition for certiorari questioning the merits of an
arbitral award.
Rule 19.8. Subject matter and governing rules. - The
remedy of an appeal through a petition for review or
the remedy of a special civil action of certiorari from a
decision of the Regional Trial Court made under the
Special ADR Rules shall be allowed in the instances,
and instituted only in the manner, provided under this
Rule.
Rule 19.9. Prohibited alternative remedies. - Where
the remedies of appeal and certiorari are specifically
made available to a party under the Special ADR
Rules, recourse to one remedy shall preclude recourse
to the other.
Rule 19.10. Rule on judicial review on arbitration in
the Philippines. - As a general rule, the court can only
vacate or set aside the decision of an arbitral tribunal
upon a clear showing that the award suffers from any
of the infirmities or grounds for vacating an arbitral
award under Section 24 of Republic Act No. 876 or
under Rule 34 of the Model Law in a domestic
arbitration, or for setting aside an award in an
international arbitration under Article 34 of the Model
Law, or for such other grounds provided under these
Special Rules.
If the Regional Trial Court is asked to set aside an
arbitral award in a domestic or international
arbitration on any ground other than those provided
in the Special ADR Rules, the court shall entertain
such ground for the setting aside or non-recognition
of the arbitral award only if the same amounts to a
violation of public policy.
The court shall not set aside or vacate the award of
the arbitral tribunal merely on the ground that the
arbitral tribunal committed errors of fact, or of law, or
of fact and law, as the court cannot substitute its
judgment for that of the arbitral tribunal.
Rule 19.11. Rule on judicial review of foreign
arbitral award. - The court can deny recognition and
enforcement of a foreign arbitral award only upon the
grounds provided in Article V of the New York
Convention, but shall have no power to vacate or set
aside a foreign arbitral award.
C. APPEALS TO THE COURT OF APPEALS
Rule 19.12. Appeal to the Court of Appeals. - An
appeal to the Court of Appeals through a petition for
review under this Special Rule shall only be allowed
from the following final orders of the Regional Trial
Court:
a. Granting or denying an interim measure of
protection;
b. Denying a petition for appointment of an arbitrator;
c. Denying a petition for assistance in taking
evidence;
d. Enjoining or refusing to enjoin a person from
divulging confidential information;
e. Confirming, vacating or correcting/modifying a
domestic arbitral award;
f. Setting aside an international commercial arbitration
award;
g. Dismissing the petition to set aside an international
commercial arbitration award even if the court does
not decide to recognize or enforce such award;
h. Recognizing and/or enforcing an international
commercial arbitration award;
i. Dismissing a petition to enforce an international
commercial arbitration award;
j. Recognizing and/or enforcing a foreign arbitral
award;
k. Refusing recognition and/or enforcement of a
foreign arbitral award;
l. Granting or dismissing a petition to enforce a
deposited mediated settlement agreement; and
m. Reversing the ruling of the arbitral tribunal
upholding its jurisdiction.
Rule 19.13. Where to appeal. - An appeal under this
Rule shall be taken to the Court of Appeals within the
period and in the manner herein provided.
Rule 19.14. When to appeal. - The petition for
review shall be filed within fifteen (15) days from
notice of the decision of the Regional Trial Court or
the denial of the petitioners motion for
reconsideration.
Rule 19.15. How appeal taken. - Appeal shall be
taken by filing a verified petition for review in seven
(7) legible copies with the Court of Appeals, with
proof of service of a copy thereof on the adverse
26
party and on the Regional Trial Court. The original
copy of the petition intended for the Court of Appeals
shall be marked original by the petitioner.
Upon the filing of the petition and unless otherwise
prescribed by the Court of Appeals, the petitioner
shall pay to the clerk of court of the Court of Appeals
docketing fees and other lawful fees of P3,500.00 and
deposit the sum of P500.00 for costs.
Exemption from payment of docket and other lawful
fees and the deposit for costs may be granted by the
Court of Appeals upon a verified motion setting forth
valid grounds therefor. If the Court of Appeals denies
the motion, the petitioner shall pay the docketing and
other lawful fees and deposit for costs within fifteen
days from the notice of the denial.
Rule 19.16. Contents of the Petition. - The petition
for review shall (a) state the full names of the parties
to the case, without impleading the court or agencies
either as petitioners or respondent, (b) contain a
concise statement of the facts and issues involved
and the grounds relied upon for the review, (c) be
accompanied by a clearly legible duplicate original or
a certified true copy of the decision or resolution of
the Regional Trial Court appealed from, together with
certified true copies of such material portions of the
record referred to therein and other supporting
papers, and (d) contain a sworn certification against
forum shopping as provided in the Rules of Court. The
petition shall state the specific material dates showing
that it was filed within the period fixed herein.
Rule 19.17. Effect of failure to comply with
requirements. - The court shall dismiss the petition if
it fails to comply with the foregoing requirements
regarding the payment of the docket and other lawful
fees, the deposit for costs, proof of service of the
petition, the contents and the documents, which
should accompany the petition.
Rule 19.18. Action on the petition. - The Court of
Appeals may require the respondent to file a
comment on the petition, not a motion to dismiss,
within ten (10) days from notice, or dismiss the
petition if it finds, upon consideration of the grounds
alleged and the legal briefs submitted by the parties,
that the petition does not appear to be prima facie
meritorious.
Rule 19.19. Contents of Comment. - The comment
shall be filed within ten (10) days from notice in
seven (7) legible copies and accompanied by clearly
legible certified true copies of such material portions
of the record referred to therein together with other
supporting papers. The comment shall (a) point out
insufficiencies or inaccuracies in petitioners statement
of facts and issues, and (b) state the reasons why the
petition should be denied or dismissed. A copy thereof
shall be served on the petitioner, and proof of such
service shall be filed with the Court of Appeals.
Rule 19.20. Due course. - If upon the filing of a
comment or such other pleading or documents as
may be required or allowed by the Court of Appeals
or upon the expiration of the period for the filing
thereof, and on the basis of the petition or the
records, the Court of Appeals finds prima facie that
the Regional Trial Court has committed an error that
would warrant reversal or modification of the
judgment, final order, or resolution sought to be
reviewed, it may give due course to the petition;
otherwise, it shall dismiss the same.
Rule 19.21. Transmittal of records. - Within fifteen
(15) days from notice that the petition has been given
due course, the Court of Appeals may require the
court or agency concerned to transmit the original or
a legible certified true copy of the entire record of the
proceeding under review. The record to be
transmitted may be abridged by agreement of all
parties to the proceeding. The Court of Appeals may
require or permit subsequent correction of or addition
to the record.
Rule 19.22. Effect of appeal. - The appeal shall not
stay the award, judgment, final order or resolution
sought to be reviewed unless the Court of Appeals
directs otherwise upon such terms as it may deem
just.
Rule 19.23. Submission for decision. - If the petition
is given due course, the Court of Appeals may set the
case for oral argument or require the parties to
submit memoranda within a period of fifteen (15)
days from notice. The case shall be deemed
submitted for decision upon the filing of the last
pleading or memorandum required by the Court of
Appeals.
The Court of Appeals shall render judgment within
sixty (60) days from the time the case is submitted
for decision.
Rule 19.24. Subject of appeal restricted in certain
instance. - If the decision of the Regional Trial Court
refusing to recognize and/or enforce, vacating and/or
setting aside an arbitral award is premised on a
finding of fact, the Court of Appeals may inquire only
into such fact to determine the existence or non-
existence of the specific ground under the arbitration
laws of the Philippines relied upon by the Regional
Trial Court to refuse to recognize and/or enforce,
27
vacate and/or set aside an award. Any such inquiry
into a question of fact shall not be resorted to for the
purpose of substituting the courts judgment for that
of the arbitral tribunal as regards the latters ruling on
the merits of the controversy.
Rule 19.25. Party appealing decision of court
confirming arbitral award required to post bond. - The
Court of Appeals shall within fifteen (15) days from
receipt of the petition require the party appealing
from the decision or a final order of the Regional Trial
Court, either confirming or enforcing an arbitral
award, or denying a petition to set aside or vacate the
arbitral award to post a bond executed in favor of the
prevailing party equal to the amount of the award.
Failure of the petitioner to post such bond shall be a
ground for the Court of Appeals to dismiss the
petition.
D. SPECIAL CIVIL ACTION FOR CERTIORARI
Rule 19.26. Certiorari to the Court of Appeals. -
When the Regional Trial Court, in making a ruling
under the Special ADR Rules, has acted without or in
excess of its jurisdiction, or with grave abuse of
discretion amounting to lack or excess of jurisdiction,
and there is no appeal or any plain, speedy, and
adequate remedy in the ordinary course of law, a
party may file a special civil action for certiorari to
annul or set aside a ruling of the Regional Trial Court.
A special civil action for certiorari may be filed against
the following orders of the court.
a. Holding that the arbitration agreement is inexistent,
invalid or unenforceable;
b. Reversing the arbitral tribunals preliminary
determination upholding its jurisdiction;
c. Denying the request to refer the dispute to
arbitration;
d. Granting or refusing an interim relief;
e. Denying a petition for the appointment of an
arbitrator;
f. Confirming, vacating or correcting a domestic
arbitral award;
g. Suspending the proceedings to set aside an
international commercial arbitral award and referring
the case back to the arbitral tribunal;
h. Allowing a party to enforce an international
commercial arbitral award pending appeal;
i. Adjourning or deferring a ruling on whether to set
aside, recognize and or enforce an international
commercial arbitral award;
j. Allowing a party to enforce a foreign arbitral award
pending appeal; and
k. Denying a petition for assistance in taking
evidence.
Rule 19.27. Form. - The petition shall be
accompanied by a certified true copy of the
questioned judgment, order or resolution of the
Regional Trial Court, copies of all pleadings and
documents relevant and pertinent thereto, and a
sworn certification of non-forum shopping as provided
in the Rules of Court.
Upon the filing of the petition and unless otherwise
prescribed by the Court of Appeals, the petitioner
shall pay to the clerk of court of the Court of Appeals
docketing fees and other lawful fees of P3,500.00 and
deposit the sum of P500.00 for costs. Exemption from
payment of docket and other lawful fees and the
deposit for costs may be granted by the Court of
Appeals upon a verified motion setting forth valid
grounds therefor. If the Court of Appeals denies the
motion, the petitioner shall pay the docketing and
other lawful fees and deposit for costs within fifteen
days from the notice of the denial.
Rule 19.28. When to file petition. - The petition
must be filed with the Court of Appeals within fifteen
(15) days from notice of the judgment, order or
resolution sought to be annulled or set aside. No
extension of time to file the petition shall be allowed.
Rule 19.29. Arbitral tribunal a nominal party in the
petition. - The arbitral tribunal shall only be a nominal
party in the petition for certiorari. As nominal party,
the arbitral tribunal shall not be required to submit
any pleadings or written submissions to the court.
The arbitral tribunal or an arbitrator may, however,
submit such pleadings or written submissions if the
same serves the interest of justice.
In petitions relating to the recognition and
enforcement of a foreign arbitral award, the arbitral
tribunal shall not be included even as a nominal party.
However, the tribunal may be notified of the
proceedings and furnished with court processes.
Rule 19.30. Court to dismiss petition. - The court
shall dismiss the petition if it fails to comply with
Rules 19.27 and 19.28 above, or upon consideration
of the ground alleged and the legal briefs submitted
by the parties, the petition does not appear to be
prima facie meritorious.
28
Rule 19.31. Order to comment. - If the petition is
sufficient in form and substance to justify such
process, the Court of Appeals shall immediately issue
an order requiring the respondent or respondents to
comment on the petition within a non-extendible
period of fifteen (15) days from receipt of a copy
thereof. Such order shall be served on the
respondents in such manner as the court may direct,
together with a copy of the petition and any annexes
thereto.
Rule 19.32. Arbitration may continue despite
petition for certiorari. - A petition for certiorari to the
court from the action of the appointing authority or
the arbitral tribunal allowed under this Rule shall not
prevent the arbitral tribunal from continuing the
proceedings and rendering its award. Should the
arbitral tribunal continue with the proceedings, the
arbitral proceedings and any award rendered therein
will be subject to the final outcome of the pending
petition for certiorari.
Rule 19.33. Prohibition against injunctions. - The
Court of Appeals shall not, during the pendency of the
proceedings before it, prohibit or enjoin the
commencement of arbitration, the constitution of the
arbitral tribunal, or the continuation of arbitration.
Rule 19.34. Proceedings after comment is filed. -
After the comment is filed, or the time for the filing
thereof has expired, the court shall render judgment
granting the relief prayed for or to which the
petitioner is entitled, or denying the same, within a
non-extendible period of fifteen (15) days.
Rule 19.35. Service and enforcement of order or
judgment. - A certified copy of the judgment rendered
in accordance with the last preceding section shall be
served upon the Regional Trial Court concerned in
such manner as the Court of Appeals may direct, and
disobedience thereto shall be punished as contempt.
E. APPEAL BY CERTIORARI TO THE SUPREME
COURT
Rule 19.36. Review discretionary. - A review by the
Supreme Court is not a matter of right, but of sound
judicial discretion, which will be granted only for
serious and compelling reasons resulting in grave
prejudice to the aggrieved party. The following, while
neither controlling nor fully measuring the court's
discretion, indicate the serious and compelling, and
necessarily, restrictive nature of the grounds that will
warrant the exercise of the Supreme Courts
discretionary powers, when the Court of Appeals:
a. Failed to apply the applicable standard or test for
judicial review prescribed in these Special ADR Rules
in arriving at its decision resulting in substantial
prejudice to the aggrieved party;
b. Erred in upholding a final order or decision despite
the lack of jurisdiction of the court that rendered such
final order or decision;
c. Failed to apply any provision, principle, policy or
rule contained in these Special ADR Rules resulting in
substantial prejudice to the aggrieved party; and
d. Committed an error so egregious and harmful to a
party as to amount to an undeniable excess of
jurisdiction.
The mere fact that the petitioner disagrees with the
Court of Appeals determination of questions of fact,
of law or both questions of fact and law, shall not
warrant the exercise of the Supreme Courts
discretionary power. The error imputed to the Court
of Appeals must be grounded upon any of the above
prescribed grounds for review or be closely analogous
thereto.
A mere general allegation that the Court of Appeals
has committed serious and substantial error or that it
has acted with grave abuse of discretion resulting in
substantial prejudice to the petitioner without
indicating with specificity the nature of such error or
abuse of discretion and the serious prejudice suffered
by the petitioner on account thereof, shall constitute
sufficient ground for the Supreme Court to dismiss
outright the petition.
Rule 19.37. Filing of petition with Supreme Court. -
A party desiring to appeal by certiorari from a
judgment or final order or resolution of the Court of
Appeals issued pursuant to these Special ADR Rules
may file with the Supreme Court a verified petition for
review on certiorari. The petition shall raise only
questions of law, which must be distinctly set forth.
Rule 19.38. Time for filing; extension. - The petition
shall be filed within fifteen (15) days from notice of
the judgment or final order or resolution appealed
from, or of the denial of the petitioner's motion for
new trial or reconsideration filed in due time after
notice of the judgment.
On motion duly filed and served, with full payment of
the docket and other lawful fees and the deposit for
costs before the expiration of the reglementary
period, the Supreme Court may for justifiable reasons
grant an extension of thirty (30) days only within
which to file the petition.
Rule 19.39. Docket and other lawful fees; proof of
service of petition. - Unless he has theretofore done
29
so or unless the Supreme Court orders otherwise, the
petitioner shall pay docket and other lawful fees to
the clerk of court of the Supreme Court of P3,500.00
and deposit the amount of P500.00 for costs at the
time of the filing of the petition. Proof of service of a
copy thereof on the lower court concerned and on the
adverse party shall be submitted together with the
petition.
Rule 19.40. Contents of petition. - The petition shall
be filed in eighteen (18) copies, with the original copy
intended for the court being indicated as such by the
petitioner, and shall (a) state the full name of the
appealing party as the petitioner and the adverse
party as respondent, without impleading the lower
courts or judges thereof either as petitioners or
respondents; (b) indicate the material dates showing
when notice of the judgment or final order or
resolution subject thereof was received, when a
motion for new trial or reconsideration, if any, was
filed and when notice of the denial thereof was
received; (c) set forth concisely a statement of the
matters involved, and the reasons or arguments relied
on for the allowance of the petition; (d) be
accompanied by a clearly legible duplicate original, or
a certified true copy of the judgment or final order or
resolution certified by the clerk of court of the court a
quo and the requisite number of plain copies thereof,
and such material portions of the record as would
support the petition; and (e) contain a sworn
certification against forum shopping.
Rule 19.41. Dismissal or denial of petition. - The
failure of the petitioner to comply with any of the
foregoing requirements regarding the payment of the
docket and other lawful fees, deposit for costs, proof
of service of the petition, and the contents of and the
documents which should accompany the petition shall
be sufficient ground for the dismissal thereof.
The Supreme Court may on its own initiative deny the
petition on the ground that the appeal is without
merit, or is prosecuted manifestly for delay, or that
the questions raised therein are too insubstantial to
require consideration.
Rule 19.42. Due course; elevation of records. - If
the petition is given due course, the Supreme Court
may require the elevation of the complete record of
the case or specified parts thereof within fifteen (15)
days from notice.
PART VII
FINAL PROVISIONS
RULE 20: FILING AND DEPOSIT FEES
Rule 20.1. Filing fee in petitions or counter-petitions
to confirm or enforce, vacate or set aside arbitral
award or for the enforcement of a mediated
settlement agreement. - The filing fee for filing a
petition to confirm or enforce, vacate or set aside an
arbitral award in a domestic arbitration or in an
international commercial arbitration, or enforce a
mediated settlement agreement shall be as follows:
PhP 10,000.00 - if the award does not exceed PhP
1,000,000.00
PhP 20,000.00 - if the award does not exceed PhP
20,000,000.00
PhP 30,000.00 - if the award does not exceed PhP
50,000,000.00
PhP 40,000.00 - if the award does not exceed PhP
100,000,000.00
PhP 50,000.00 - if the award exceeds PhP
100,000,000.00
The minimal filing fee payable in "all other
actions not involving property" shall be paid by
the petitioner seeking to enforce foreign
arbitral awards under the New York Convention
in the Philippines.
Rule 20.2. Filing fee for action to enforce as a
counter-petition. - A petition to enforce an arbitral
award in a domestic arbitration or in an international
commercial arbitration submitted as a petition to
enforce and/or recognize an award in opposition to a
timely petition to vacate or set aside the arbitral
award shall require the payment of the filing fees
prescribed in Rule 20.1 above.
Rule 20.3. Deposit fee for mediated settlement
agreements. - Any party to a mediated settlement
agreement who deposits it with the clerk of court
shall pay a deposit fee of P500.00.
Rule 20.4. Filing fee for other proceedings. - The
filing fee for the filing of any other proceedings,
including applications for interim relief, as authorized
under these Special Rules not covered under any of
the foregoing provisions, shall be P10,000.00.
RULE 21: COSTS
Rule 21.1. Costs. - The costs of the ADR proceedings
shall be borne by the parties equally unless otherwise
agreed upon or directed by the arbitrator or arbitral
tribunal.
Rule 21.2. On the dismissal of a petition against a
ruling of the arbitral tribunal on a preliminary
30
question upholding its jurisdiction. - If the Regional
Trial Court dismisses the petition against the ruling of
the arbitral tribunal on a preliminary question
upholding its jurisdiction, it shall also order the
petitioner to pay the respondent all reasonable costs
and expenses incurred in opposing the petition.
"Costs" shall include reasonable attorneys fees. The
court shall award costs upon application of the
respondent after the petition is denied and the court
finds, based on proof submitted by respondent, that
the amount of costs incurred is reasonable.
Rule 21.3. On recognition and enforcement of a
foreign arbitral award. - At the time the case is
submitted to the court for decision, the party praying
for recognition and enforcement of a foreign arbitral
award shall submit a statement under oath confirming
the costs he has incurred only in the proceedings in
the Philippines for such recognition and enforcement
or setting-aside. The costs shall include attorneys
fees the party has paid or is committed to pay to his
counsel of record.
The prevailing party shall be entitled to an award of
costs which shall include the reasonable attorneys
fees of the prevailing party against the unsuccessful
party. The court shall determine the reasonableness
of the claim for attorneys fees.
Rule 21.4. Costs. - At the time the case is submitted
to the court for decision, the party praying for
confirmation or vacation of an arbitral award shall
submit a statement under oath confirming the costs
he has incurred only in the proceedings for
confirmation or vacation of an arbitral award. The
costs shall include the attorneys fees the party has
paid or is committed to pay to his counsel of record.
The prevailing party shall be entitled to an award of
costs with respect to the proceedings before the
court, which shall include the reasonable attorneys
fees of the prevailing party against the unsuccessful
party. The court shall determine the reasonableness
of the claim for attorneys fees.
Rule 21.5. Bill of Costs. - Unless otherwise agreed
upon by the parties in writing, at the time the case is
submitted to the court for decision, the party praying
for recognition and enforcement or for setting aside
an arbitral award shall submit a statement under oath
confirming the costs he has incurred only in the
proceedings for such recognition and enforcement or
setting-aside. The costs shall include attorneys fees
the party has paid or is committed to pay to his
counsel of record.
The prevailing party shall be entitled to an award of
costs, which shall include reasonable attorneys fees
of the prevailing party against the unsuccessful party.
The court shall determine the reasonableness of the
claim for attorneys fees.
Rule 21.6. Governments exemption from payment
of fees. - The Republic of the Philippines, its agencies
and instrumentalities are exempt from paying legal
fees provided in these Special ADR Rules. Local
governments and government controlled corporation
with or with or without independent charters are not
exempt from paying such fees.
RULE 22: APPLICABILITY OF THE RULES OF
COURT
Rule 22.1. Applicability of Rules of Court. - The
provisions of the Rules of Court that are applicable to
the proceedings enumerated in Rule 1.1 of these
Special ADR Rules have either been included and
incorporated in these Special ADR Rules or specifically
referred to herein.
In connection with the above proceedings, the Rules
of Evidence shall be liberally construed to achieve the
objectives of the Special ADR Rules.
RULE 23: SEPARABILITY
Rule 23.1. Separability Clause. - If, for any reason,
any part of the Special ADR Rules shall be held
unconstitutional or invalid, other Rules or provisions
hereof which are not affected thereby, shall continue
to be in full force and effect.
RULE 24: TRANSITORY PROVISIONS
Rule 24.1. Transitory Provision. - Considering its
procedural character, the Special ADR Rules shall be
applicable to all pending arbitration, mediation or
other ADR forms covered by the ADR Act, unless the
parties agree otherwise. The Special ADR Rules,
however, may not prejudice or impair vested rights in
accordance with law.
RULE 25: ONLINE DISPUTE RESOLUTION
Rule 25.1. Applicability of the Special ADR Rules to
Online Dispute Resolution. - Whenever applicable and
appropriate, the Special ADR Rules shall govern the
procedure for matters brought before the court
involving Online Dispute Resolution.
Rule 25.2. Scope of Online Dispute Resolution. -
Online Dispute Resolution shall refer to all electronic
forms of ADR including the use of the internet and
other web or computed based technologies for
facilitating ADR.
31
RULE 26: EFFECTIVITY
Rule 26.1. Effectivity. - The Special ADR Rules shall
take effect fifteen (15) days after its complete
publication in two (2) newspapers of general
circulation.
RULE A: GUIDELINES FOR THE RESOLUTION OF
ISSUES RELATED TO ARBITRATION OF LOANS
SECURED BY COLLATERAL
Rule A.1. Applicability of an arbitration agreement in
a contract of loan applies to the accessory contract
securing the loan. - An arbitration agreement in a
contract of loan extends to and covers the accessory
contract securing the loan such as a pledge or a
mortgage executed by the borrower in favor of the
lender under that contract of loan.
Rule A.2. Foreclosure of pledge or extra-judicial
foreclosure of mortgage not precluded by arbitration .
- The commencement of the arbitral proceeding
under the contract of loan containing an arbitration
agreement shall not preclude the lender from availing
himself of the right to obtain satisfaction of the loan
under the accessory contract by foreclosure of the
thing pledged or by extra-judicial foreclosure of the
collateral under the real estate mortgage in
accordance with Act No. 3135.
The lender may likewise institute foreclosure
proceedings against the collateral securing the loan
prior to the commencement of the arbitral
proceeding.
By agreeing to refer any dispute under the contract of
loan to arbitration, the lender who is secured by an
accessory contract of real estate mortgage shall be
deemed to have waived his right to obtain satisfaction
of the loan by judicial foreclosure.
Rule A.3. Remedy of the borrower against an action
taken by the lender against the collateral before the
constitution of the arbitral tribunal. - The borrower
providing security for the payment of his loan who is
aggrieved by the action taken by the lender against
the collateral securing the loan may, if such action
against the collateral is taken before the arbitral
tribunal is constituted, apply with the appropriate
court for interim relief against any such action of the
lender. Such interim relief may be obtained only in a
special proceeding for that purpose, against the
action taken by the lender against the collateral,
pending the constitution of the arbitral tribunal. Any
determination made by the court in that special
proceeding pertaining to the merits of the
controversy, including the right of the lender to
proceed against the collateral, shall be only
provisional in nature.
After the arbitral tribunal is constituted, the court shall
stay its proceedings and defer to the jurisdiction of
the arbitral tribunal over the entire controversy
including any question regarding the right of the
lender to proceed against the collateral.
Rule A.4. Remedy of borrower against action taken
by the lender against the collateral after the arbitral
tribunal has been constituted. - After the arbitral
tribunal is constituted, the borrower providing security
for the payment of his loan who is aggrieved by the
action taken by the lender against the collateral
securing the loan may apply to the arbitral tribunal for
relief, including a claim for damages, against such
action of the lender. An application to the court may
also be made by the borrower against any action
taken by the lender against the collateral securing the
loan but only if the arbitral tribunal cannot act
effectively to prevent an irreparable injury to the
rights of such borrower during the pendency of the
arbitral proceeding.
An arbitration agreement in a contract of loan
precludes the borrower therein providing security for
the loan from filing and/or proceeding with any action
in court to prevent the lender from foreclosing the
pledge or extra-judicially foreclosing the mortgage. If
any such action is filed in court, the lender shall have
the right provided in the Special ADR Rules to have
such action stayed on account of the arbitration
agreement.
Rule A.5. Relief that may be granted by the arbitral
tribunal. - The arbitral tribunal, in aid of the arbitral
proceeding before it, may upon submission of
adequate security, suspend or enjoin the lender from
proceeding against the collateral securing the loan
pending final determination by the arbitral tribunal of
the dispute brought to it for decision under such
contract of loan.
The arbitral tribunal shall have the authority to
resolve the issue of the validity of the foreclosure of
the thing pledged or of the extrajudicial foreclosure of
the collateral under the real estate mortgage if the
same has not yet been foreclosed or confirm the
validity of such foreclosure if made before the
rendition of the arbitral award and had not been
enjoined.
Rule A.6. Arbitration involving a third-party provider
of security. - An arbitration agreement contained in a
contract of loan between the lender and the borrower
extends to and covers an accessory contract securing
32
the loan, such as a pledge, mortgage, guaranty or
suretyship, executed by a person other than the
borrower only if such third-party securing the loan
has agreed in the accessory contract, either directly
or by reference, to be bound by such arbitration
agreement.

Unless otherwise expressly agreed upon by the third-

party securing the loan, his agreement to be bound
by the arbitration agreement in the contract of loan
shall pertain to disputes arising from or in connection
with the relationship between the lender and the
borrower as well as the relationship between the
lender and such third-party including the right of the
lender to proceed against the collateral securing the
loan, but shall exclude disputes pertaining to the
relationship exclusively between the borrower and the
provider of security such as that involving a claim by
the provider of security for indemnification against the
borrower.

In this multi-party arbitration among the lender, the

borrower and the third party securing the loan, the
parties may agree to submit to arbitration before a
sole arbitrator or a panel of three arbitrators to be
appointed either by an Appointing Authority
designated by the parties in the arbitration agreement
or by a default Appointing Authority under the law.

In default of an agreement on the manner of

appointing arbitrators or of constituting the arbitral
tribunal in such multi-party arbitration, the dispute
shall be resolved by a panel of three arbitrators to be
designated by the Appointing Authority under the law.
But even in default of an agreement on the manner of
appointing an arbitrator or constituting an arbitral
tribunal in a multi-party arbitration, if the borrower
and the third party securing the loan agree to
designate a common arbitrator, arbitration shall be
decided by a panel of three arbitrators: one to be
designated by the lender; the other to be designated
jointly by the borrower and the provider of security
who have agreed to designate the same arbitrator;
and a third arbitrator who shall serve as the
chairperson of the arbitral panel to be designated by
the two party-designated arbitrators.

33